(1) The department, upon receipt of satisfactory evidence of the death of the person who signed the affidavit of liability which accompanied the application for a license of such minor, shall cancel such license, unless the minor has already reached the age of eighteen years, and shall not issue a new license until such time as a new application is made pursuant to the provisions of this article.
(2) In the event of the death of the signer, a licensee under the age of eighteen years shall notify the department and secure the necessary new signer.
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