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This is a horribly tough situation! My Mom never forgave me for getting her license taken by way of a professional fitness to drive assessment. But at least she didn't get injured or harm anyone else. We had to disable her vehicle to keep her from driving until we could sell it.
In most states, the doctor can order a driver's evaluation or test for anyone deemed unfit to drive. The state issues a notice to appear for testing, and takes the license if the driver does not pass.
Consult an attorney as soon as you can. Insurance may not cover him in an accident if his doctor has deemed him unfit to drive, even if he has not surrendered his license.
As for buying a new car if you sell his, he has to present a license to buy at a dealer, or at the registrar of vehicles to transfer title.
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Thank you, Sue! It's sad to hear your mom never forgave you for getting her license taken away. But I applaud you for being so positive about it!
I will ask attorney about the insurance. It never occurred to me that it may not cover him. Thank you for that information!
As for buying a new car, yes I was thinking you need a license, but as I do more research, I found out that you can buy a car without license if you buy it with cash. You just need some kind of ID like passport, at least in my parents' state.