1.1                          A bill for an act 
  1.2             relating to liquor; modifying liability insurance 
  1.3             requirements for liquor retailers; amending Minnesota 
  1.4             Statutes 1996, section 340A.409, subdivision 1. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1996, section 340A.409, 
  1.7   subdivision 1, is amended to read: 
  1.8      Subdivision 1.  [INSURANCE REQUIRED.] No retail license may 
  1.9   be issued, maintained or renewed unless the applicant 
  1.10  demonstrates proof of financial responsibility with regard to 
  1.11  liability imposed by section 340A.801.  The issuing authority 
  1.12  must submit to the commissioner the applicant's proof of 
  1.13  financial responsibility.  This subdivision does not prohibit a 
  1.14  local unit of government from requiring higher insurance or bond 
  1.15  coverages, or a larger deposit of cash or securities.  The 
  1.16  minimum requirement for proof of financial responsibility may be 
  1.17  given by filing: 
  1.18     (1) a certificate that there is in effect for the license 
  1.19  period an insurance policy issued by an insurer required to be 
  1.20  licensed under section 60A.07, subdivision 4, or by an insurer 
  1.21  recognized as an eligible surplus lines carrier pursuant to 
  1.22  section 60A.206 or pool providing at least $50,000 of coverage 
  1.23  because of bodily injury to any one person in any one 
  1.24  occurrence, $100,000 because of bodily injury to two or more 
  1.25  persons in any one occurrence, $10,000 because of injury to or 
  2.1   destruction of property of others in any one occurrence, $50,000 
  2.2   for loss of means of support of any one person in any one 
  2.3   occurrence, and $100,000 for loss of means of support of two or 
  2.4   more persons in any one occurrence; 
  2.5      (2) a bond of a surety company with minimum coverages as 
  2.6   provided in clause (1); or 
  2.7      (3) a certificate of the state treasurer that the licensee 
  2.8   has deposited with the state treasurer $100,000 in cash or 
  2.9   securities which may legally be purchased by savings banks or 
  2.10  for trust funds having a market value of $100,000. 
  2.11     This subdivision does not prohibit an insurer from 
  2.12  providing the coverage required by this subdivision in 
  2.13  combination with other insurance coverage. 
  2.14     An annual aggregate policy limit for dram shop insurance of 
  2.15  not less than $300,000 per policy year may be included in the 
  2.16  policy provisions. 
  2.17     A liability insurance policy required by this section must 
  2.18  provide that it may not be canceled for: 
  2.19     (1) any cause, except for nonpayment of premium, by either 
  2.20  the insured or the insurer unless the canceling party has first 
  2.21  given 30 days' notice in writing to the issuing authority of 
  2.22  intent to cancel the policy; and 
  2.23     (2) nonpayment of premium unless the canceling party has 
  2.24  first given ten days' notice in writing to the issuing authority 
  2.25  of intent to cancel the policy.