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City of Moundsview <br />Moundsview, Minnesota 55112 <br />Attn: Don Pauley <br />City Administratcr <br />M>r u.. nano,,. <br />The undersigned are writing concerning a severe problem we -e presently <br />undergoing in the obtaining of the required Liquor Liability (Dram Shop) <br />Insurance at reasonable cost. <br />While it is true that the entire State has been in turmoil over the Dram <br />Shop issue for about a year, due to the departure of most of the insur- <br />ance companies for many reasons --not the least of which is the harshness <br />of the law as it exists in Minnesota-- but the issue is especially trou- <br />blesome in Mounds View. <br />The State rf Minnesota, the major cities of Minneapolis and Saint Paul <br />.'..^.d ••"•...SC ubarb, investigated require in—ranre in minimum <br />coverage of $50,000 per person (injury or medical costs), $100,000 per <br />occurance (injury or medical), $10,000 property damage, SS0,000 per <br />person and $100,000 per occurance for loss of support. Mounds View re- <br />quires a simi'& pattern but has minimums of $100,000 and S30n,000 in- <br />stead of the usual $50,000 and $'.00,000. <br />The result is, first, about a 60% increase in insurance rremlums paid by <br />Mounds View off sale businesses over that paid by our competing businesses <br />in neighbor,ng municioalities, cr second, a refusal by the insurers to <br />ever quote us a price if we have had one claim (note the intentional use <br />(f the �.ord claim rr.ther tha: settlement or pzyaent rr los,) in the last <br />three years. <br />We understand that the limits were set in the prudent pursuit of provid- <br />ing adequate protection for our city and our citizens, but in this new <br />insurance and lawsuit climate it merely puts us at a very compet,tive dis- <br />advantage and does nothing to provide our citizens added protection against <br />customers of bars in those other towns. <br />It is a matter of judg <br />those set by the State <br />burdensome. To revise <br />that is obviously felt <br />provide us much needed <br />imprudent on the part <br />ement and choice as to requiring limits higher than <br />and we feel that this standard has become excessively <br />our Municipal Code more in accordance with a standard <br />to be adequate by these other governing bodies would <br />relief and yet could not be considered reckless or <br />)f our City Council. <br />r <br />W <br />-1- <br />