GEICO GEICO contacts state agency to suspend my drivers license. Miami Florida

It's not GEICO's job to inform the state that you sold your car.  GEICO also has no proof you sold your car, so it would be illegal for them to do so.  

its your job to inform the state.  States have forms you can fill out whoever you sell a vehicle that you are supposed to fill out. in cases the new owner never registers the vehicle, these forms absolve you of things like parking tickets.  

Contacted the State DMV, the new owner has not register the car yet, as often happens. They changed my information to sold, did not request any proof of that. Next time GEICO informs State DMV of a policy cancellation, please let them know if the car was sold, as it is often mentioned by the client during the policy  cancellation questions. They may not require this information, but it will avoid an unintended suspension of the client driver's license.

Your problem isn't with GEICO, it's with whoever bought your car. GEICO has to obey the law and report that you dropped insurance on your vehicle. When your state DMV checked,they didn't see replacement insurance or that you had sold your car, so they suspended your license. You need to contact your DMV and let them see the proof that you sold your car.