I called my insurance broker Franco Acra and posed the question. To be double sure she called the Casa del Conductor, the privatized semi-government office where those who have accidents are privileged to go to if their insurance covers the service, and asked the legal expert there. Lenin Hernandez at Casa del Conductor told her that while foreign licenses are valid here for 90 days, if the person pays the fee at the Department of Migration the license to drive will continue to be in effect. He referred us to Law 241, Art. 30. He said that in the case of an accident, the person should go with passport and Migration paper proving the additional fee to remain legal was paid.
He says they deal with this all the time.
Nevertheless, I checked the law online and it actually says something different. It says the foreign license is only valid for 90 days.
What is good to know is that one can legally apply for a driver's license without having to get a residence. So one could actually get a license in less than a week -- it sends one to the Consulate of the country that issued the foreign license, then that probably has to be legalized, and then one gets to apply for the Dominican license. This is a procedure that does not seem to require a lawyer. One can do all the steps by oneself.
From talking to people, though, there seems to be a lot of ignorance regarding this topic. I believe that the person should take a copy of the law to the DGTT office when applying for the Dominican license.
On the other hand, from what the person at the Casa del Conductor tells us, apparently it is a practice to allow those who keep their legal status to drive. But to be extra safe and legal, would seem best to apply for the Dominican license is the way to go.
Art. 30.- Personas exentas del requisito de licencia.
a. Toda persona que est? debidamente autorizada para conducir un veh?culo
de motor en cualquier pa?s extranjero donde se exijan requisitos similares a
los establecidos por esta Ley para la concesi?n de licencias de conductor, y
que posea y lleve consigo una licencia autorizada y en vigor en dicho pa?s
extranjero, estar? autorizada para conducir tal tipo de veh?culos de motor en
la Rep?blica Dominicana, durante los primeros noventa (90) d?as desde su
arribo.
b. Toda persona que poseyere una licencia de conductor de las se?aladas en
el inciso anterior, podr? solicitar y obtener una licencia de conducir, sin
cumplir otro requisito que el pago de los derechos correspondientes,
presentando una certificaci?n del representante diplom?tico o consular del
pa?s de donde procede dicha licencia, acreditado en la Rep?blica
Dominicana, certificando que la referida licencia es v?lida, y un certificado
m?dico expedido seg?n se dispone en el inciso a) del art?culo 32.
To translate, what it is saying is that those with foreign licenses can drive for 90 days legally here. Then in (b) it says that anyone who has a foreign license can request a driver's license, without any other requisite but paying the fees for the license and presenting a certificate from the consul of the country where the license is from and with a certificate that the license is valid and with a medical certificate.
To read the law, see
http://www.ottt.gob.do/LinkClick.aspx?fileticket=RMQaUR9WHqQ=&tabid=64&mid=406