(a) The security deposited is available only for (1) the payment of a settlement agreement covering a claim arising out of the accident upon instruction of the person who made the deposit, or
(2) the payment of a judgment given against the person required to make the deposit for damages arising out of the accident in an action at law begun not later than one year after the deposit of security, or within one year after the date of deposit of security following failure to make payments under an agreement to pay.
(b) Every distribution of funds from a security deposit is subject to the limits of the department's evaluation on behalf of a claimant.