(A) All applicants for any type of intoxicating liquor, 3.2% malt liquor or wine license to be issued or renewed must, as a condition of the issuance of the license, have general liability insurance providing a minimum coverage of $500,000 combined single limit per occurrence for bodily injury and property damage.
(B) All applicants for any type of intoxicating liquor, 3.2% malt liquor, or wine license to be issued or renewed must, as a condition of the issuance of the license, demonstrate proof of financial responsibility with regard to liability imposed by M.S. § 340A.801. Proof of financial responsibility may be given by filing one of the following:
(1) A certificate that there is in effect for the license period an insurance policy or pool providing minimum coverage of $300,000 combined single limit per occurrence;
(2) A bond of a surety company with the minimum coverages as provided in division (B)(1) above; or
(3) A certificate of the Commissioner of Management and Budget that the licensee has deposited with the Commissioner of Management and Budget $300,000 in cash or securities which may legally be purchased by savings banks or for trust funds having a market value of $300,000.
(4) This division does not prohibit an insurer from providing the coverage required by this division in combination with other insurance coverage.
(C) A liability insurance policy required by this section must provide that it may not be canceled for:
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(1) Any cause, except for nonpayment of premium, by either the insured or the insurer unless the canceling party has first given a 60-days notice to the city, in writing, addressed to the City Clerk, of intent to cancel the policy;
(2) Nonpayment of premium unless the canceling party has first given a ten-day notice to the city, in writing, addressed to the City Clerk, of intent to cancel the policy; and
(3) In the event of a policy cancellation, the insurer shall send written notice to the City Clerk the same time that a cancellation request is received from or a notice is sent to the insured licensee.
(D) Notwithstanding any other provisions of this chapter regarding suspension of licenses, if the insurance or other evidence of financial responsibility lapses during the term of any on-sale licenses issued under this chapter, then the lapse shall act as an automatic suspension of the license. Notice of cancellation of liquor liability insurance or other evidence of financial responsibility shall serve as notice to the licensee of the impending suspension. If evidence of compliance with the financial responsibility requirement is not presented to the City Clerk or other licensing authority before termination is effective, the license shall be deemed suspended immediately upon lapse.
(E) Divisions (A) and (B) do not apply to on-sale 3.2% malt liquor licensees who by affidavit establish that they had sales of less than $25,000 of 3.2% malt liquor for the preceding year, or off-sale 3.2% malt liquor licenses with sales of less than $50,000 of 3.2% malt liquor for the preceding year, or to holders of on-sale wine licenses with sales of less than $25,000 of wine for the preceding year.
(‘81 Code, § 3-42) (Ord. 458, passed 9-21-89; Ord. 468, passed 12-21-89; Ord. 624, passed 1-23-97; Am. Ord. 735, passed 9-25-03; Am. Ord. 902, passed 9-23-10; Am. Ord. 933, passed 8-9-12)