The question of licences and the process for discontinuance of service are two different issues. When an operator applies for a licence, the agency does not set conditions. However, it must ensure that certain conditions are met, insurance being the basic condition, quite obviously. Provided the operator has insurance and meets the other criteria, then a licence is issued. If, after a year, the licensee wishes to have his licence cancelled or suspended, then he is free to submit a request to the agency to have his licence cancelled or suspended. However, the licensee is not required under section 64 of the existing legislation to make such a request. The operator must give 120 days' notice of his intention of discontinuing service. These are two separate requirements.
To answer your first question, safety will not be affected because as soon as the statutory insurance lapses, the agency suspends the operator's licence. This is a mandatory requirement of the act. Immediate action must also be taken if a licensee fails to meet statutory insurance requirements. These are two separate issues. The suspension or cancellation of a licence does not relieve a licensee of his obligation to meet the requirements prescribed in section 64.