2006 Minnesota Statutes

340A.409 LIABILITY INSURANCE.
    Subdivision 1. Insurance required. No retail license may be issued, maintained or renewed
unless the applicant demonstrates proof of financial responsibility with regard to liability imposed
by section 340A.801. The issuing authority must submit to the commissioner the applicant's
proof of financial responsibility. This subdivision does not prohibit a local unit of government
from requiring higher insurance or bond coverages, or a larger deposit of cash or securities. 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 section 60A.07, subdivision 4, or by an insurer recognized as
an eligible surplus lines carrier pursuant to section 60A.206 or pool providing at least $50,000 of
coverage because of bodily injury to any one person in any one occurrence, $100,000 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, $50,000 for loss of means of support
of any one person in any one occurrence, and $100,000 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 clause (1); or
(3) a certificate of the commissioner of finance that the licensee has deposited with the
commissioner of finance $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 an insurer from providing the coverage required by this
subdivision in combination with other insurance coverage.
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.
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.
    Subd. 2. Market assistance. The market assistance plan of the Minnesota Joint Underwriting
Association shall assist licensees in obtaining insurance coverage.
    Subd. 3. Minnesota Joint Underwriting Association. (a) The Minnesota Joint Underwriting
Association shall provide coverage required by subdivision 1 to persons rejected under this
subdivision.
(b) A liquor vendor shall be denied or terminated from coverage through the Minnesota
Joint Underwriting Association if the liquor vendor disregards safety standards, laws, rules, or
ordinances pertaining to the offer, sale, or other distribution of liquor.
    Subd. 3a. Notification by insurer of status of claim. Upon the request of the insured, an
insurer who is providing coverage required by subdivision 1 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.
    Subd. 4. Insurance not required. Subdivision 1 does not apply to licensees who by affidavit
establish that:
(1) they are on-sale 3.2 percent malt liquor licensees with sales of less than $25,000 of
3.2 percent malt liquor for the preceding year;
(2) they are off-sale 3.2 percent malt liquor licensees with sales of less than $50,000 of
3.2 percent malt liquor for the preceding year;
(3) they are holders of on-sale wine licenses with sales of less than $25,000 for wine for
the preceding year; or
(4) they are holders of temporary wine licenses issued under law.
History: 1985 c 200 s 2; 1985 c 305 art 6 s 9; 1985 c 309 s 7-9; 1Sp1985 c 16 art 2 s 3 subd
1; 1Sp1986 c 3 art 1 s 38; 1987 c 107 s 1; 1987 c 152 art 1 s 1; 1988 c 534 s 1; 1991 c 249 s 31;
1994 c 485 s 61,62; 1997 c 129 art 1 s 5,6; 2003 c 112 art 2 s 50