House amends liquor-liability law to clarify per-person and aggregate coverage limits

On the House floor Feb. 21, Representative Snow moved and the House adopted Amendment 2 to House Bill 312, which adjusts statutory language governing required liquor-liability insurance for businesses that serve alcoholic beverages. The amendment changes the language to specify coverage amounts and correct an inconsistency in how insurers had been interpreting limits.

Representative Snow explained that the statute previously read in a way that led insurers to interpret the limits as $1,000,000 per accident rather than $1,000,000 per person; the amended language clarifies the intent: $1,000,000 per person, $2,000,000 per occurrence and $4,000,000 aggregate over a calendar year. The sponsor and supporters characterized the change as technical and protective of the public: it ensures injured parties have appropriate recovery and provides clarity for insurers.

Several representatives questioned whether the change would create premium impacts, whether it would apply prospectively at renewals or on a fixed effective date, and whether the market was prepared for such a change. Representative Oda and others urged more actuarial review; Representative Snow said the change would take effect when enacted and that businesses would coordinate with carriers for new coverage levels.

The House adopted the amendment and agreed to circle the bill for further consideration; supporters said the amendment corrects an existing defect in statute and protects injured parties.