(A) Proof. Applicants for a new or renewal license shall file with the City Administrator proof of financial responsibility with regard to the liability imposed by M.S. § 340A.801, as it may be amended from time to time, or acts amendatory and supplementary thereto, in the manner and in the amount sufficient to satisfy the requirements of M.S. § 340A.409, as it may be amended from time to time, or acts amendatory and supplementary thereto, or such other insurance as may be required from time to time by the Commissioner of Public Safety. Any liability insurance policy required by this section must further provide that no cancellation of the same for any cause can be made either by the insured or the insurance company without first giving ten days’ written notice to the city of intention to cancel the same, the notice to be addressed to the City Administrator. Failure of any licensee to maintain insurance required under this section throughout the license period shall result in the immediate suspension of the license for up to 60 days and until such time as the required insurance is obtained and proof filed with the City Administrator. Upon the administrative suspension, the Council shall thereafter require the licensee to show cause why the license should not be revoked. An annual aggregate of $300,000 may be included in the insurance coverage.
(B) Documents submitted to Commissioner. All proofs of financial responsibility and exemption affidavits filed with the city under this section shall be submitted by the city to the state’s Commissioner of Public Safety.
(C) Insurance requirements. No liquor, 3.2% malt liquor or wine license may be issued, maintained or renewed unless the applicant demonstrates proof of financial responsibility with regard to civil liability or dram shop actions. This applies to all types of liquor licenses. The city must submit to the state the applicant’s proof of financial responsibility. A local government may require higher insurance or bond coverage or a larger deposit of cash or securities. An insurer may provide the below coverage in combination with other insurance coverage. The minimum requirement for proof of financial responsibility is:
(1) A certificate that there is in effect for the license period an insurance policy issued by an insurer 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, $100,000 for loss of means of support of two or more persons in any one occurrence, $50,000 for other pecuniary loss of any one person in any one occurrence and $100,000 for other pecuniary loss of two or more persons in any one occurrence;
(2) A bond of a surety company with minimum coverages as provided in division (C)(1) above; and
(3) A certificate of the State Treasurer that the licensee has deposited with the State Treasurer $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.
(Prior Code, § 5.08) (Ord. 335, Third Series, effective 6-26-2014)