Opinion ID: 1895532
Heading Depth: 1
Heading Rank: 1

Heading: Statutory Framework: The Civil Damages Act and Insurance Requirements

Text: Minnesota's Civil Damages Act, known colloquially as the Dram Shop Act, provides that [a] spouse, child, parent, guardian, employer, or other person injured in person, property, or means of support, or who incurs other pecuniary loss by an intoxicated person or by the intoxication of another person, has a right of action in the person's own name for all damages sustained against a person who caused the intoxication of that person by illegally selling alcoholic beverages. Minn.Stat. § 340A.801, subd. 1. Another statutory provision requires establishments holding liquor licenses to demonstrate proof of financial responsibility for potential liability: No retail license may be issued, maintained or renewed unless the applicant demonstrates proof of financial responsibility with regard to liability imposed by section 340A.801. Minn. Stat. § 340A.409, subd. 1 (2008). The statute goes on to state that [t]he minimum requirement for proof of financial responsibility may be given by filing: (1) a certificate that there is in effect for the license period an insurance policy. . . 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, and $100,000 for loss of means of support of two or more persons in any one occurrence; (2) a bond of a surety company with minimum coverages as provided in clause (1); or (3) a certificate of the commissioner of finance that the licensee has deposited with the commissioner of finance $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. Id. In addition, the statute provides that [a]n annual aggregate policy limit for dram shop insurance of not less than $300,000 per policy year may be included in the policy provisions. Id. Another statute outlines the function and purpose of MJUA, stating that MJUA was created to provide insurance coverage to any person or entity unable to obtain insurance through ordinary methods if the insurance is required by statute. Minn.Stat. § 62I.02, subd. 1 (2008). In addition, the law requires that liquor liability insurance policies issued by MJUA contain at least the minimum coverage required by section 340A.409, subdivision 1. Minn.Stat. § 62I.02, subd. 4 (2008).