(A) No retail license may be issued, maintained or renewed unless the applicant demonstrates proof of financial responsibility with regard to liability imposed by M.S. § 340A.801. The Clerk must submit to the Commissioner the applicant’s proof of financial responsibility. The minimum requirement for proof of financial responsibility may be given by filing:
(1) A certificate that there is in effect for the license period an insurance policy issued by an insurer required to be licensed under M.S. § 60A.07, subd. 4, or by an insurer recognized as an eligible surplus lines carrier pursuant to M.S. § 60A.206 or pool providing at least $100,000 of coverage because of bodily injury to any one person in any one occurrence, $200,000 because of bodily injury to two or more persons in any one occurrence, $10,000 because of injury to or destruction of property of others in any one occurrence, $100,000 for loss of means of support of any one person in any one occurrence, and $200,000 for loss of means of support of two or more persons in any one occurrence;
(2) A bond of a surety company with minimum coverages as provided in division (A)(1) of this section; or
(3) A certificate of the commissioner of management and budget that the licensee has deposited with the commissioner of management and budget $100,000 in cash or securities which may legally be purchased by savings banks or for trust funds having a market value of $100,000.
(B) This section does not prohibit an insurer from providing the coverage required by this section in combination with other insurance coverage.
(C) An annual aggregate policy limit for dram shop insurance of not less than $300,000 per policy year may be included in the policy provisions.
(D) A liability insurance policy required by this section must provide that it may not be canceled for:
(1) Any cause, except for nonpayment of premium, by either the insured or the insurer unless the canceling party has first given 30 days’ notice in writing to the issuing authority of intent to cancel the policy; and
(2) Nonpayment of premium unless the canceling party has first given ten days’ notice in writing to the issuing authority of intent to cancel the policy.
(E) In the event of a policy cancellation, the insurer will send notice to the insuring authority at the same time that a cancellation request is received from or a notice is sent to the insured.
(F) All insurance policies which provide coverage with regard lo any liability imposed by M.S. § 340A.801 must contain at least the minimum coverage required by this section.
(G) No licensee shall commence business until the offered security has been approved by the council nor continue in business after the security is no longer in force. The council may disapprove any bond, insurance policy or other security upon finding that it does not meet the requirements of this code or other law, or that the security or insurance may become unable to pay any claim which may arise.
(H) Any liability insurance policy filed as proof of financial responsibility under this section shall conform to M.S. § 340A.409, as it may be amended from time to time. Operation of a business which is required to be licensed by this chapter without having on file with the city at all times effective proof of financial responsibility is a cause for revocation of the license.
(Ord. 172, passed 7-25-11)
