(a) No license under this chapter may be issued, maintained, or renewed unless the applicant demonstrates proof of financial responsibility with regard to liability imposed by M.S. § 340A.801, as amended. The minimum requirement for proof of financial responsibility may be given by submitting:
(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, as amended, or by an insurer recognized as an eligible surplus line carrier pursuant to M.S. § 60A.206, as amended, or pool providing at least $500,000 of coverage because of bodily injury to any one in any one occurrence, $1,000,000 because of bodily injury to two or more in any one occurrence, $500,000 because of injury to or destruction of property of others in any one occurrence, $500,000 for loss of means of support of any one in any one occurrence and $1,000,000 for loss of means of support of two or more in any one occurrence; or
(2) A bond of a surety company with minimum coverages as provided in subsection (a)(1) above.
(b) Nothing in this section shall prohibit an insurer from providing the coverage required by subsection (a)(1) above in combination with other insurance coverage.
(c) An annual aggregate policy limit for dram shop insurance of not less than $1,000,000 per policy year may be included in the policy provisions.
(d) A liability insurance policy required by subsection (a) above 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 60 days’ notice in writing to the of intent to cancel the policy; and
(2) Nonpayment of premium unless the canceling party has given ten days’ notice in writing to the of intent to cancel the policy.
(e) Affidavits. Subsection (a) above does not apply to licenses, who by affidavit, establish that they are holders of:
(1) or licenses with of less than $25,000 in the preceding year; or
(2) license with of less than $50,000 in the preceding year.
(Ord. 2020-2, passed 2-24-2020)