(A) Every person licensed to sell at retail intoxicating liquor, 3.2 percent malt liquor or wine at on-sale in the city must, after March 1, 1983, demonstrate proof of financial responsibility with regard to liability imposed by M.S. § 340A.409, to the City Clerk or the City Clerk’s designee and to the Commissioner of Public Safety as a condition of the issuance or renewal of the person's license.
(B) Proof of financial responsibility may be given by filing:
(1) (a) A certificate that there is in effect 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. Hotels and motels having 200 rooms or more are required to have minimum coverage of $500,000 because of bodily injury for one or more persons.
2. $50,000 for loss of means of support of any one person, 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. Hotels and motels having 200 or more are required to have minimum coverage of $500,000 because of bodily injury for one or more persons.
3. The certificate must provide that no payment of any claim by the insurance company shall in any manner decrease the coverage provided for in respect to any other claim or claims brought against the insured or company thereafter.
(b) A bond of a surety company with minimum coverages as provided in subsection (a); or
(c) A certificate of the State Treasurer that the licensee has deposited with the State Treasurer $100,000 in cash or securities which may be purchased by savings banks or for trust funds having a market value of $100,000.
(2) The licensee must provide the certificate and proof to the City Clerk or designee at the time of application for a new license or renewal of the existing license. The certificate of insurance must show that all coverages meet or exceed the requirements of M.S. § 340A.409 and that the insurance company cannot cancel the insurance until at least ten days written notice of the cancellation has been served upon the city. If a new certificate of insurance is not filed with the City Clerk during the ten day period after notice of cancellation, the license to sell at retail intoxicating, 3.2 percent malt liquor or wine is to be suspended until a new certificate of insurance is filed with the City Clerk and the Minnesota Commissioner of Public Safety.
(3) The City Clerk is authorized to waive the foregoing insurance requirements for 3.2 percent malt liquor and wine licenses if the licensee files an affidavit from a certified public accountant to show that sales are less than the amounts set forth in M.S. § 340A.409, Subd. 4. The licensee must also file a written commitment with the City Clerk or designee that if sales exceed such amounts, the licensee will not continue to sell 3.2 percent malt liquor or wine until the licensee has filed a certificate of insurance meeting the requirements set forth in this section.
('72 Code, §825:00) (Ord. 1983-420(A), passed 5-9-83; Am. Ord. 1986-535(A), passed 7-28-86; Am. Ord. 1997-841, passed 3-24-97; Am. Ord. 2005-1052, passed 11-28-05)