Senate Study Bill 1183 SENATE FILE BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON WARNSTADT) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the use of insurance loss history in the 2 issuance of dramshop liability insurance. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1993XC 83 5 av/rj/14 PAG LIN 1 1 Section 1. Section 123.92, Code 2009, is amended to read 1 2 as follows: 1 3 123.92 CIVIL LIABILITY FOR DISPENSING OR SALE AND SERVICE 1 4 OF BEER, WINE, OR INTOXICATING LIQUOR (DRAMSHOP ACT) == 1 5 LIABILITY INSURANCE == UNDERAGE PERSONS. 1 6 1. a. Any person who is injured in person or property or 1 7 means of support by an intoxicated person or resulting from 1 8 the intoxication of a person, has a right of action for all 1 9 damages actually sustained, severally or jointly, against any 1 10 licensee or permittee, whether or not the license or permit 1 11 was issued by the division or by the licensing authority of 1 12 any other state, who sold and served any beer, wine, or 1 13 intoxicating liquor to the intoxicated person when the 1 14 licensee or permittee knew or should have known the person was 1 15 intoxicated, or who sold to and served the person to a point 1 16 where the licensee or permittee knew or should have known the 1 17 person would become intoxicated. 1 18 b. If the injury was caused by an intoxicated person, a 1 19 permittee or licensee may establish as an affirmative defense 1 20 that the intoxication did not contribute to the injurious 1 21 action of the person.The remedy provided by this section 1 22 shall apply both prospectively, to actions filed on or after 1 23 July 1, 1992, and retrospectively, to actions pending in trial 1 24 or appellate courts prior to July 1, 1992.1 25 2. Every liquor control licensee and class "B" beer 1 26 permittee, except a class "E" liquor control licensee, shall 1 27 furnish proof of financial responsibility by the existence of 1 28 a liability insurance policy in an amount determined by the 1 29 division. An insurer providing dramshop liability insurance 1 30 shall not surcharge the premium or decline to insure a 1 31 licensee or permittee at the location for which the license or 1 32 permit is issued based on the insurance loss history of a 1 33 previous licensee or permittee at that location. 1 34 3. a. Notwithstanding section 123.49, subsection 1, any 1 35 person who is injured in person or property or means of 2 1 support by an intoxicated person who is under legal age or 2 2 resulting from the intoxication of a person who is under legal 2 3 age, has a right of action for all damages actually sustained, 2 4 severally or jointly, against a person who is not a licensee 2 5 or permittee and who dispensed or gave any beer, wine, or 2 6 intoxicating liquor to the intoxicated underage person when 2 7 the nonlicensee or nonpermittee who dispensed or gave the 2 8 beer, wine, or intoxicating liquor to the underage person knew 2 9 or should have known the underage person was intoxicated, or 2 10 who dispensed or gave beer, wine, or intoxicating liquor to 2 11 the underage person to a point where the nonlicensee or 2 12 nonpermittee knew or should have known that the underage 2 13 person would become intoxicated. 2 14 b. If the injury was caused by an intoxicated person who 2 15 is under legal age, a person who is not a licensee or 2 16 permittee and who dispensed or gave beer, wine, or 2 17 intoxicating liquor to the underage person may establish as an 2 18 affirmative defense that the intoxication did not contribute 2 19 to the injurious action of the underage person. 2 20 c. For purposes of thisparagraphsubsection, "dispensed" 2 21 or "gave" means the act of physically presenting a receptacle 2 22 containing beer, wine, or intoxicating liquor to the underage 2 23 person whose actions or intoxication results in the sustaining 2 24 of damages by another person. However, a person who dispenses 2 25 or gives beer, wine, or intoxicating liquor to an underage 2 26 person shall only be liable for any damages if the person knew 2 27 or should have known that the underage person was under legal 2 28 age. 2 29 EXPLANATION 2 30 This bill amends Code section 123.92 to prohibit an insurer 2 31 that provides dramshop liability insurance from surcharging 2 32 the premium or declining to insure a licensee or permittee at 2 33 the location for which the license or permit is issued based 2 34 on the loss history of a previous licensee or permittee at 2 35 that location. 3 1 LSB 1993XC 83 3 2 av/rj/14