Minnesota Session Laws - 1985, Regular Session

  

                         Laws of Minnesota 1985 

                        CHAPTER 309-H.F.No. 265 
           An act relating to commerce; providing for uninsured 
          and underinsured motorist coverage; authorizing annual 
          aggregate policy limits for dram shop insurance; 
          providing for practices and procedures relating to 
          dram shop actions; modifying provisions relating to 
          the assigned risk plan; amending Minnesota Statutes 
          1984, sections 65B.43, by adding subdivisions; 65B.49, 
          subdivision 4, and by adding a subdivision; 340.11, 
          subdivisions 21 and 23, and by adding a subdivision; 
          340.12; 340.135; 340.95; and 340.951. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1984, section 65B.43, is 
amended by adding a subdivision to read: 
    Subd. 16.  "Uninsured motor vehicle" means a motor vehicle 
or motorcycle for which a plan of reparation security meeting 
the requirements of sections 65B.41 to 65B.71 is not in effect. 
    Sec. 2.  Minnesota Statutes 1984, section 65B.43, is 
amended by adding a subdivision to read: 
    Subd. 17.  "Underinsured motor vehicle" means a motor 
vehicle or motorcycle to which a bodily injury liability policy 
applies at the time of the accident but its limit for bodily 
injury liability is less than the amount needed to compensate 
the insured for his or her actual damages. 
    Sec. 3.  Minnesota Statutes 1984, section 65B.43, is 
amended by adding a subdivision to read: 
    Subd. 18.  "Uninsured motorist coverage" means coverage for 
the protection of persons insured under that coverage who are 
legally entitled to recover damages for bodily injury from 
owners or operators of uninsured motor vehicles and hit-and-run 
motor vehicles. 
    Sec. 4.  Minnesota Statutes 1984, section 65B.43, is 
amended by adding a subdivision to read: 
    Subd. 19.  "Underinsured motorist coverage" means coverage 
for the protection of persons insured under that coverage who 
are legally entitled to recover damages for bodily injury from 
owners or operators of underinsured motor vehicles.  
    Sec. 5.  Minnesota Statutes 1984, section 65B.49, 
subdivision 4, is amended to read: 
    Subd. 4.  [UNINSURED OR HIT-AND-RUN MOTOR VEHICLE 
COVERAGE AND UNDERINSURED MOTORIST COVERAGES.] (1) No plan of 
reparation security may be renewed, delivered or issued for 
delivery, or executed in this state with respect to any motor 
vehicle registered or principally garaged in this state 
unless coverage is uninsured and underinsured motorist coverages 
are provided therein or supplemental thereto, in the amounts. 
The coverages combined, at a minimum, must provide limits of 
$25,000 because of injury to or the death of one person in any 
accident, and subject to the said limit for one person, $50,000 
because of bodily injury to or the death of two or more persons 
in any one accident, for the protection of persons insured 
thereunder who are legally entitled to recover damages from 
owners or operators of uninsured motor vehicles and hit-and-run 
motor vehicles because of injury.  In the case of injury to, or 
the death of, two or more persons in any accident, the amount 
available to any one person must not exceed the coverage limit 
provided for injury to, or the death of, one person in any 
accident.  For purposes of this subdivision, uninsured motorist 
coverage and underinsured motorist coverage shall be a single 
coverage. 
    (2) Every owner of a motor vehicle registered or 
principally garaged in this state shall maintain uninsured motor 
vehicle coverage and underinsured motorist coverages as provided 
in this subdivision. 
    (3) "Uninsured motor vehicle" means any motor vehicle or 
motorcycle for which a plan of reparation security meeting the 
requirements of sections 65B.41 to 65B.71 is not in effect No 
reparation obligor is required to provide limits of uninsured 
and underinsured motorist coverages in excess of the bodily 
injury liability limit provided by the applicable plan of 
reparation security. 
    (4) No recovery shall be permitted under the uninsured 
motor vehicle provisions and underinsured motorist coverages of 
this section for basic economic loss benefits paid or payable, 
or which would be payable but for any applicable deductible.  
    (5) If at the time of the accident the injured person is 
occupying a motor vehicle, the limit of liability for uninsured 
and underinsured motorist coverages available to the injured 
person is the limit specified for that motor vehicle. However, 
if the injured person is occupying a motor vehicle of which the 
injured person is not an insured, the injured person may be 
entitled to excess insurance protection afforded by a policy in 
which the injured party is otherwise insured.  The excess 
insurance protection is limited to the extent of covered damages 
sustained, and further is available only to the extent by which 
the limit of liability for like coverage applicable to any one 
motor vehicle listed on the automobile insurance policy of which 
the injured person is insured exceeds the limit of liability of 
the coverage available to the injured person from the occupied 
motor vehicle. 
    If at the time of the accident the injured person is not 
occupying a motor vehicle, the injured person is entitled to 
select any one limit of liability for any one vehicle afforded 
by a policy under which the injured person is insured. 
    (6) Regardless of the number of policies involved, vehicles 
involved, persons covered, claims made, vehicles or premiums 
shown on the policy, or premiums paid, in no event shall the 
limit of liability for uninsured and underinsured motorist 
coverages for two or more motor vehicles be added together to 
determine the limit of insurance coverage available to an 
injured person for any one accident. 
    (7) The uninsured and underinsured motorist coverages 
required by this subdivision do not apply to bodily injury of 
the insured while occupying a motor vehicle owned by the 
insured, unless the occupied vehicle is an insured motor vehicle.
    Sec. 6.  Minnesota Statutes 1984, section 65B.49, is 
amended by adding a subdivision to read:  
    Subd. 4a.  [LIABILITY ON UNDERINSURED MOTOR VEHICLES.] With 
respect to underinsured motor vehicles, the maximum liability of 
an insurer is the lesser of the difference between the limit of 
underinsured motorist coverage and the amount paid to the 
insured by or for any person or organization who may be held 
legally liable for the bodily injury; or the amount of damages 
sustained but not recovered.  
    Sec. 7.  Minnesota Statutes 1984, section 340.11, 
subdivision 21, is amended to read: 
    Subd. 21.  [LIABILITY INSURANCE.] Every person licensed to 
sell at retail intoxicating liquor or nonintoxicating malt 
liquor at on-sale or off-sale shall, after August 1, 1983, 
demonstrate proof of financial responsibility with regard to 
liability imposed by section 340.95, to the authority issuing 
the license as a condition of the issuance, maintenance, or 
renewal of his license, provided this subdivision does not apply 
to licensees who by affidavit establish that they are on-sale 
nonintoxicating malt liquor licensees with sales of less than 
$10,000 of nonintoxicating malt liquor for the preceding year, 
or off-sale nonintoxicating malt liquor licensees with sales of 
less than $20,000 of nonintoxicating malt liquor for the 
preceding year, or holders of on-sale wine licenses under 
subdivision 20, with sales of less than $10,000 of wine for the 
preceding year.  The issuing authority must submit to the 
commissioner the proof of financial responsibility or exemption 
affidavit submitted by the license applicant.  Proof of 
financial responsibility may be given by filing:  
    (a) A certificate that there is in effect for the period 
covered by the license an insurance policy or pool providing the 
following minimum coverages;  
    (1) $50,000 because of bodily injury to any one person in 
any one occurrence, and, subject to the limit for one person, in 
the amount of $100,000 because of bodily injury to two or more 
persons in any one occurrence, and in the amount of $10,000 
because of injury to or destruction of property of others in any 
one occurrence.;  
    (2) $50,000 for loss of means of support of any one person 
in any one occurrence, and, subject to the limit for one person, 
$100,000 for loss of means of support of two or more persons in 
any one occurrence; or 
    (3) an annual aggregate policy limit for dramshop liability 
of not less than $300,000 per policy year may be included in the 
policy provisions; or 
    (b) A bond of a surety company with minimum coverages as 
provided in clause (a),; or 
    (c) A certificate of the state treasurer that the licensee 
has deposited with him $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.  
    This subdivision does not prohibit a local governing unit 
from requiring higher insurance or bond coverages, or a larger 
deposit of cash or securities than is required hereunder, as a 
condition of issuance or renewal of a retail intoxicating liquor 
or nonintoxicating malt liquor on-sale or off-sale license.  
    This subdivision does not prohibit an insurer from 
providing the coverage required by this subdivision in 
combination with other insurance coverage. 
    The commissioner of commerce shall advise licensees and 
municipalities subject to the financial responsibility 
requirements of this subdivision of those persons offering 
insurance coverage.  The commissioner of commerce shall 
establish a program to assist licensees in obtaining insurance 
coverage.  The program shall include a committee appointed by 
the commissioner of commerce of a that is representative group 
of insurance carriers and producers, liquor vendors, and the 
public.  No less than one-half of the committee members shall 
represent casualty insurers and surplus lines agents or brokers. 
The commissioner of commerce or the commissioner's designated 
representative shall serve as an ex officio member of the 
committee.  The committee shall review and act upon all properly 
executed applications requesting liquor liability market 
assistance.  The market assistance program shall be established 
by the commissioner of commerce by August 1, 1983, and shall 
continue to function so long as its services are deemed by the 
commissioner of commerce to be necessary to relieve perceived 
availability problems in the liquor liability insurance market.  
If the committee finds that it cannot assist in securing 
insurance coverage it shall notify the applicant in writing with 
a full explanation and recommendation for enhancing its ability 
to secure insurance. The commissioner of commerce shall, if 
necessary, establish an assigned risk plan pursuant to 
subdivision 23.  
    Sec. 8.  Minnesota Statutes 1984, section 340.11, is 
amended by adding a subdivision to read: 
    Subd. 21a.  [NOTIFICATION BY INSURER OF STATUS OF 
CLAIM.] Upon the request of the insured, an insurer who is 
providing coverage required by subdivision 21 shall inform the 
insured of the status of any claims made under the policy.  The 
information must include: 
    (1) the employees of the insured that may be involved and 
the nature of their involvement;  
    (2) any amount the insurer is holding in reserve for 
payment of a claim or has paid in the disposition of the claim; 
and 
    (3) any amount paid in the defense of the claim. 
    This subdivision does not require disclosure of otherwise 
nondiscoverable information to an adverse party in litigation. 
    Sec. 9.  Minnesota Statutes 1984, section 340.11, 
subdivision 23, is amended to read:  
    Subd. 23.  [ASSIGNED RISK PLAN.] (1) The purpose of the 
assigned risk plan is to provide coverage required by 
subdivision 21 to persons rejected pursuant to this subdivision. 
    (2) An insurer who offers liquor liability insurance that 
refuses to write the coverage required by subdivision 21 shall 
furnish the applicant with a written notice of refusal.  The 
rejected applicant shall file a copy of the notice of refusal 
with the commissioner of public safety and with the assigned 
risk plan at the time of application for coverage under the plan 
to the assigned risk plan and the market assistance program.  
    A written notice of refusal must be provided to any 
applicant who has requested only liquor liability insurance if 
the insurer chooses to only offer liquor liability insurance in 
combination with other types of insurance. 
    A written notice of refusal must be provided by an insurer 
to any applicant who receives an offer of coverage from that 
insurer that is in excess of the rate charged by the assigned 
risk plan for similar coverage and risk.  A notice is not 
required if the rate for the coverage offered is less than 20 
percent in excess of the assigned risk plan rates, provided that 
the offered rate is the rate that the insurer has filed with the 
commissioner of commerce if the insurer is required to file its 
rates with the commissioner.  If the insurer is not required to 
file its rates with the commissioner, the offered rate must be 
the rate generally charged by the insurer for similar coverage 
and risk. 
    A notice of refusal is not required to be filed if there is 
not an insurer offering liquor liability insurance in the state. 
    To be eligible to participate in the assigned risk plan an 
applicant must apply for coverage through the market assistance 
program.  Application to the market assistance program must be 
made no later than the time of application to the assigned risk 
plan.  If the market assistance program is unable to secure 
coverage then coverage may be extended by the assigned risk plan.
    (3) The commissioner of commerce may enter into service 
contracts as necessary or beneficial to accomplish the purposes 
of the assigned risk plan including servicing of policies or 
contracts of coverage, data management, and assessment 
collections.  Services related to the administration of policies 
or contracts of coverages shall be performed by one or more 
qualified insurance companies licensed pursuant to section 
60A.06, subdivision 1, clause (13) or a qualified vendor of risk 
management services.  A qualified insurer or vendor of risk 
management services shall possess sufficient financial, 
professional, administrative, and personnel resources to provide 
the services required for operation of the plan.  The cost of 
all services contracted for shall be an obligation of the 
assigned risk plan.  
    (4) The commissioner of commerce may assess all insurers 
licensed pursuant to section 60A.06, subdivision 1, clause (13) 
an amount sufficient to fully fund the obligations of the 
assigned risk plan, if the commissioner of commerce determines 
that the assets of the assigned risk plan are insufficient to 
meet its obligations.  The assessment of each insurer shall be 
in a proportion equal to the proportion which the amount of 
insurance written as reported on page 14 of the annual statement 
under line 5, commercial multi-peril, and line 17, other 
liability, during the preceding calendar year by that insurer 
bears to the total written by all such carriers for such lines.  
    (5) Policies and contracts of coverage issued pursuant to 
this subdivision shall contain the usual and customary 
provisions of liability insurance policies, and shall contain 
the minimum coverage required by subdivision 21 or the local 
governing unit.  
    (6) Assigned risk policies and contracts of coverage shall 
be subject to premium tax pursuant to section 60A.15.  
    (7) Insureds served by the assigned risk plan shall be 
charged premiums based upon a rating plan approved by the 
commissioner of commerce.  Assigned risk premiums shall not be 
lower than rates generally charged by insurers for the 
business.  The commissioner of commerce shall fix the 
compensation received by the agent of record.  
    (8) The rating plan may be amended by rule pursuant to 
chapter 14 or by the following expedited procedures: 
    (a) Any person may, by written petition served upon the 
commissioner, request that a hearing be held to amend the rating 
plan. 
    (b) The commissioner shall forward a copy of the petition 
to the chief administrative law judge within three business days 
of its receipt.  The chief administrative law judge shall, 
within three business days of receipt of the copy of the 
petition or a request for a hearing by the commissioner, set a 
hearing date, assign an administrative law judge to hear the 
matter, and notify the commissioner of the hearing date and the 
administrative law judge assigned to hear the matter.  The 
hearing date must be set no less than 60 days nor more than 90 
days from the date of receipt of the petition by the 
commissioner. 
    (c) The commissioner of commerce shall publish a notice of 
the hearing in the state register at least 30 days before the 
hearing date.  The notice should be similar to that used for 
rulemaking under the administrative procedures act.  Approval by 
the administrative law judge of the notice prior to publication 
is not required.  
    (d) The hearing and all matters taking place after the 
hearing are a contested case under chapter 14.  Within 45 days 
from the commencement of the hearing and within 15 days of the 
completion of the hearing the administrative law judge shall 
submit a report to the commissioner of commerce.  The parties, 
or the administrative law judge, if the parties cannot agree, 
shall adjust all time requirements under the contested case 
procedure to conform with the 45-day requirement. 
    (e) The commissioner shall render a decision within ten 
business days of the receipt of the administrative law judge's 
report. 
    (f) If all parties to the proceeding agree, any of the 
previous requirements may be waived or modified. 
    (g) A petition for a hearing to amend the rating plan 
received by the commissioner within 180 days of the date of the 
commissioner's decision in a prior proceeding to amend the 
rating plan is invalid and requires no action. 
    (9) A liquor vendor shall be denied or terminated from 
coverage through the assigned risk plan if the liquor vendor 
disregards safety standards, laws, rules, or ordinances 
pertaining to the offer, sale, or other distribution of liquor. 
    The commissioner may by rule establish other conditions for 
denial or termination from coverage through the assigned risk 
plan. 
    (8) (10) The commissioner of commerce shall adopt rules, 
including emergency rules, as may be necessary to implement this 
subdivision.  The rules may include:  
    (a) appeal procedures from actions of the assigned risk 
plan;  
    (b) formation of an advisory committee composed of 
insurers, vendors of risk management services and licensees, to 
advise the commissioner of commerce regarding operation of the 
plan; and 
    (c) applicable rating plans and rating standards.  
    Sec. 10.  Minnesota Statutes 1984, section 340.12, is 
amended to read: 
    340.12 [APPLICATION FOR LICENSE.] 
    Every person desiring a license from the commissioner of 
public safety, shall file with him a verified written 
application in the form prescribed by the commissioner.  All 
applicants for manufacturer's and wholesaler's licenses to sell 
intoxicating liquor shall file with the commissioner of public 
safety a bond with corporate surety to be approved by the 
commissioner of public safety before granting the license or 
cash or United States government bonds in the sum of $10,000, 
according to the character of the license, made payable to the 
state of Minnesota.  All applicants for a license to sell 
intoxicating liquors on any railroad train or other common 
carrier shall file with the commissioner of public safety a bond 
with corporate surety to be approved by the commissioner of 
public safety before granting the license or cash or United 
States government bonds in the sum of $1,000.  All manufacturers 
and wholesalers of wines containing not more than 25 percent of 
alcohol by weight and manufacturers and wholesalers of beer 
containing more than 3.2 percent of alcohol by weight shall file 
with the commissioner of public safety a bond with corporate 
surety to be approved by the commissioner of public safety 
before granting the license or cash or United States government 
bonds in the sum of $5,000. 
    Every person desiring a license from a local governing body 
shall file with the clerk of the municipality, or in the case of 
a public corporation organized and existing under sections 
473.601 to 473.679, with the executive director thereof, a 
verified written application in the form prescribed by the 
commissioner with the additional information the local governing 
body requires.  An applicant for an "off sale" license shall 
file with the clerk of the proper municipality a bond with 
corporate surety or cash or United States government bonds in a 
sum not less than $1,000 and not more than $3,000 as the local 
governing body of such municipality determines.  The bond shall 
be approved by the local governing body and the commissioner of 
public safety. 
    Every application for the issuance or renewal of a license 
for the sale of intoxicating or nonintoxicating liquor must 
include a copy of each summons received by the applicant under 
section 340.951 during the preceding year. 
    An applicant for an "on sale" license shall file with the 
clerk of the proper municipality, or in the case of a public 
corporation organized and existing under sections 473.601 to 
473.679, with the executive director thereof, a bond with 
corporate surety or cash or United States government bonds in a 
sum not less than $3,000 nor more than $5,000 as the local 
governing body of such municipality determines.  The bond shall 
be approved by the local governing body.  
    A liability insurance policy required by section 340.11, 
subdivision 21 shall provide that it may not be canceled for any 
cause either by the insured or the insurance company without 
first giving ten days' notice to the municipality in writing of 
intention to cancel it, addressed to the city clerk of the 
municipality, or in the case of a public corporation organized 
and existing under sections 473.601 to 473.679, to the executive 
director thereof.  The operation of an "off sale" or "on sale" 
business without having on file at all times with the 
municipality the liability insurance policy herein referred to 
shall be grounds for immediate revocation of the license.  
     Bonds of manufacturers, wholesalers, and common carriers 
shall run to the state of Minnesota.  Bonds of "on sale" and 
"off sale" retail dealers shall run to the municipality in which 
the license is issued.  The bonds shall be conditioned as 
follows: 
     As to manufacturers, wholesalers and common carriers: 
     (a) That the licensee will obey the law relating to the 
licensed business; 
     (b) That the licensee shall pay to the state when due all 
taxes, license fees, penalties and other charges payable by him 
under this act or any other law relating to the manufacture, 
distribution, or sale of intoxicating liquor; 
    (c) That in the event of any violation of the provisions of 
law, the bond shall be forfeited to the state of Minnesota as 
hereinafter provided. 
    As to "off sale" and "on sale" dealers: 
    (a) That the licensee will obey the law relating to the 
licensed business; 
    (b) That the licensee will pay to the municipality when due 
all taxes, license fees, penalties and other charges provided by 
law; 
    (c) That in the event of any violation of the provisions of 
any law relating to the retail "off sale" and retail "on sale" 
of intoxicating liquor, the bond or policy shall be forfeited to 
the municipality in which the license was issued. 
    All bonds shall be for the benefit of the obligee and all 
persons suffering damages by reason of the breach of the 
conditions thereof.  In the event of the forfeiture of any bond 
for violation of law, the district court of the county wherein 
the licensed business was carried on may forfeit the penal sum 
of the bond, or any part thereof, to the state or municipality 
named as obligee in the bond.  
    Sec. 11.  Minnesota Statutes 1984, section 340.135, is 
amended to read: 
    340.135 [LICENSES; REVOCATION; SUSPENSION.] 
    The authority issuing or approving any license or permit 
pursuant to the intoxicating liquor act may shall either suspend 
for not to exceed 60 days or revoke such license or permit or 
impose a civil fine not to exceed $2,000 for each violation upon 
a finding that the licensee or permit holder has failed to 
comply with any applicable statute, regulation or ordinance 
relating to intoxicating liquor.  No suspension or revocation 
shall take effect until the licensee or permit holder has been 
afforded an opportunity for a hearing pursuant to sections 14.57 
to 14.70.  
    Sec. 12.  Minnesota Statutes 1984, section 340.95, is 
amended to read: 
    340.95 [INJURIES CAUSED BY INTOXICATION, CIVIL ACTIONS.] 
    Subdivision 1.  [CAUSE OF ACTION.] Every husband, wife, 
child, parent, guardian, employer, or other person who is 
injured in person or property, or means of support, or incurs 
other pecuniary loss by any intoxicated person, or by the 
intoxication of any person, has a right of action, in his own 
name, against any person who, by illegally selling or bartering 
intoxicating liquors or non-intoxicating malt liquors, caused 
the intoxication of that person, for all damages sustained.  All 
damages recovered by a minor under this section shall be paid 
either to the minor or to his parent, guardian, or next friend, 
as the court directs.  All suits for damages under this section 
shall be by civil action in any court of this state having 
jurisdiction.  Actions for damages based upon liability imposed 
by this section shall be governed by section 604.01.  The 
provisions of section 604.01, as applied under this section, do 
not apply to actions for injury to person, property, or loss of 
means of support brought by a husband, wife, child, parent, 
guardian or other dependent of an intoxicated person. 
    Subd. 2.  [SUBROGATION CLAIMS DENIED.] There shall be no 
recovery by any insurance company against any liquor vendor 
under subrogation clauses of the uninsured, underinsured, 
collision, or other first party coverages of a motor vehicle 
insurance policy as a result of payments made by the company to 
persons who have claims that arise in whole or part under this 
section.  The provisions of section 65B.53, subdivision 3, do 
not apply to actions under this section. 
    Subd. 3.  [PRESUMED DAMAGES IN CASE OF DEATH.] In the case 
of an individual who is deceased and where a person is found 
liable under this section for a person's death, the individual 
or those claiming damages on the person's behalf, shall be 
conclusively presumed collectively to be damaged in a minimum 
amount of $30,000; provided, however, that nothing herein shall 
prevent a claimant from recovering a greater amount of damages 
to the extent allowable and proven under this section. 
    Sec. 13.  Minnesota Statutes 1984, section 340.951, is 
amended to read: 
    340.951 [NOTICE OF INJURY; DISCOVERY BEFORE ACTIONS.] 
    Subdivision 1.  [NOTICE REQUIRED.] Every person who claims 
damages, and every person or his insurer who claims contribution 
or indemnity, from any municipality owning and operating a 
municipal liquor store or from the licensee of any licensed 
establishment for the sale of intoxicating liquor or 
non-intoxicating malt liquor for or on account of any injury 
within the scope of section 340.95, shall give a written notice 
to the governing body of the municipality or the licensee, as 
the case may be, stating: 
    (1) The time and date when, and person to whom the liquor 
was sold or bartered; 
    (2) The name and address of the person or persons who were 
injured or whose property was damaged; 
    (3) The approximate time and date and the place where any 
injury to person or property occurred.  Every municipality or 
licensee who claims contribution or indemnification from any 
other licensee or municipality shall give a written notice in 
the form and manner specified in this section to the other 
municipality or licensee.  
    No error or omission in the notice shall void the effect of 
the notice, if otherwise valid, unless the error or omission is 
of a substantially material nature. 
    In the case of claims for contribution or indemnity this 
notice shall be served within 120 days after the injury occurs, 
or within 60 days after receiving written notice of a claim for 
contribution or indemnity, whichever is applicable, and no 
action for contribution or indemnity therefor shall be 
maintained unless the notice has been given.  In the case of a 
claim for damages the notice shall be served by the claimant's 
attorney within 120 days of the date of entering an 
attorney-client relationship with the person in regard to the 
claim, and no action for damages shall be maintained unless the 
notice has been given.  
    If requested to do so, a municipality or licensee receiving 
a notice shall promptly furnish claimant's attorney the names 
and addresses of other municipalities or licensees who sold or 
bartered liquor to the person identified in the notice, if known.
    Actual notice of sufficient facts to reasonably put the 
governing body of the municipality or the licensee, as the case 
may be, or its insurer, on notice of a possible claim, shall be 
construed to comply with the notice requirements herein. 
    No action shall be maintained for injury under section 
340.95 unless commenced within two years after the injury. 
    Subd. 2.  [BAD FAITH NOTICE.] A claimant who in bad faith 
gives notice to a licensee who did not sell or barter liquor to 
the alleged intoxicated person is subject to liability for 
actual damages, which shall include the reasonable out-of-pocket 
attorney fees incurred by the licensee in the defense of the bad 
faith notice. 
    Sec. 14.  [EFFECTIVE DATE.] 
    Sections 1 to 6 are effective July 1, 1985, and apply to 
all insurance policies providing benefits for injuries arising 
out of the maintenance or use of a motor vehicle or motorcycle 
that are executed, issued, issued for delivery, delivered, 
continued, or renewed in this state after June 30, 1985." 
    Sections 7 and 9 are effective the day following final 
enactment.  Section 12 is effective July 1, 1985, and applies to 
causes of action arising on or after that date. 
    Approved June 7, 1985