Diesel Bombers - Loosing My License/Truck From An Accident???

So yeah, i was in an accident on 9/7/07 where some guy like.....changed lanes into my truck. I ot some letter in the mail yesterday saying

"You are hereby notified that effective 4/16/08 your privileges to operate and register motor vehicles are suspended under the provisions of section(s) 321A.5 of the Code of Iowa UNTIL SECURITY IN THE SUM OF $1,000 IS DEPOSITED WITH THIS OFFICE.

This action is taken due to an accident on 9/7/07.

Surrender your Iowa drivers license, motor vehicle plates, and registration receipts to the address above.

YOU MAY BE PROSECUTED FOR FAILURE TO SURRENDER YOUR LICENSE, MOTOR VEHICLE PLATES AND REGISTRATION.

Iowa law provides you are entitled to an appeal of this action. If you choose to request an appeal, you must submit a written request clearly stating the reason for the appeal on or before 4/6/08. Your request must include your full name, drivers license number, current address, and telephone number and be sent on or delivered to the address above. A request for appeal has been included in this form.

A CIVIL PENALTY of $200.00 must be paid before your driving privileges may be reinstated. The penalty must be submitted by cashiers check, certified check, or money order payable to the Treasurer, State of Iowa and mailed or delivered to the address above. Do not send cash or a personal check.

WARNING: Effective 4/16/08 you are not entitled to operate or register any motor vehicle in this state until you have received an official notice from this department terminating this action.

Heres the Code 321A.5

321A.5 SECURITY REQUIRED FOLLOWING ACCIDENT --
EXCEPTIONS.
1. The department shall, immediately or within sixty days after
the receipt of a report of a motor vehicle accident within this state
which has resulted in bodily injury or death or damage to the
property of any one person in the amount of one thousand dollars or
more, suspend the license of each operator and all registrations of
each owner of a motor vehicle in any manner involved in the accident,
and if the operator is a nonresident the privilege of operating a
motor vehicle within this state, and if the owner is a nonresident
the privilege of the use within this state of any motor vehicle owned
by the owner, unless the operator or owner or both shall deposit
security in a sum which shall be sufficient in the judgment of the
department to satisfy any judgment or judgments for damages resulting
from the accident as may be recovered against the operator or owner;
provided notice of the suspension shall be sent by the department to
the operator and owner not less than ten days prior to the effective
date of the suspension and shall state the amount required as
security.
2. This section shall not apply under the conditions stated in
section 321A.6 or to any of the following:
a. To such operator or owner if such owner had in effect at
the time of such accident an automobile liability policy with respect
to the motor vehicle involved in such accident;
b. To such operator, if not the owner of such motor vehicle,
if there was in effect at the time of such accident an automobile
liability policy or bond with respect to the operator's operation of
motor vehicles not owned by the operator;
c. To such operator or owner if the liability of such
operator or owner for damages resulting from such accident is, in the
judgment of the department, covered by any other form of liability
insurance policy or bonds; or
d. To such owner if such owner is at the time of such
accident qualified as a self-insurer under section 321A.34, or to any
such operator operating such motor vehicle for such self-insurer.
3. A policy or bond is not effective under this section unless
issued by an insurance company or surety company authorized to do
business in this state, except that if the motor vehicle was not
registered in this state, or was a motor vehicle which was registered
elsewhere than in this state at the effective date of the policy or
bond, or the most recent renewal thereof, the policy or bond is not
effective under this section unless the insurance company or surety
company if not authorized to do business in this state executes a
power of attorney authorizing the department to accept service on its
behalf of notice or process in any action upon the policy or bond
arising out of the accident. However, with respect to accidents
occurring on or after January 1, 1981, and before January 1, 1983,
every such policy or bond is subject, if the accident has resulted in
bodily injury or death, to a limit, exclusive of interest and costs,
of not less than fifteen thousand dollars because of bodily injury to
or death of one person in any one accident and, subject to the limit
for one person, to a limit of not less than thirty thousand dollars
because of bodily injury to or death of two or more persons in any
one accident, and, if the accident has resulted in injury to or
destruction of property, to a limit of not less than ten thousand
dollars because of injury to or destruction of property of others in
any one accident; and with respect to accidents occurring on or after
January 1, 1983, every such policy or bond is subject, if the
accident has resulted in bodily injury or death, to a limit,
exclusive of interest and costs, of not less than twenty thousand
dollars because of bodily injury to or death of one person in any one
accident and, subject to the limit for one person, to a limit of not
less than forty thousand dollars because of bodily injury to or death
of two or more persons in any one accident, and, if the accident has
resulted in injury to or destruction of property, to a limit of not
less than fifteen thousand dollars because of injury to or
destruction of property of others in any one accident.
Upon receipt of a report of a motor vehicle accident and
information that an automobile liability policy or surety bond
meeting the requirements of this chapter was in effect at the time of
this accident covering liability for damages resulting from such
accident, the department shall forward by regular mail to the
insurance carrier or surety carrier which issued such policy or bond
a copy of such information concerning insurance or bond coverage, and
it shall be presumed that such policy or bond was in effect and
provided coverage to both the operator and the owner of the motor
vehicle involved in such accident unless the insurance carrier or
surety carrier shall notify the department otherwise within fifteen
days from the mailing of such information to such carrier; provided,
however, that in the event the department shall later ascertain that
erroneous information had been given the department in respect to the
insurance or bond coverage of the operator or owner of a motor
vehicle involved in such accident, the department shall take such
action as the department is otherwise authorized to do under this
chapter within sixty days after the receipt by the department of
correct information with respect to such coverage.

Sorry for the super long e mail, i just have no clue wtf is going on and would like some help from people who may have been in this situation before.