A Fargo insurance agent has been fined $136,500 and placed on probation for four years after violating North Dakota’s rebating laws. These laws prevent insurance agents from giving gifts worth more than $100 annually to clients or potential clients.
The penalty against Tyler Bjerke followed an investigation by the North Dakota Insurance Department. The investigation revealed that Bjerke had distributed 182 pub-style tables to clients and potential clients, with each table valued at $213.95 according to the Department’s calculations. This resulted in a settlement agreement under which Bjerke was fined.
Further findings showed that Bjerke organized a Sawyer Brown Band concert in February 2023, offering free admission to attendees who were either clients or potential clients. The Department determined this event also exceeded the permissible gift value limit. However, prosecution regarding this event was deferred as part of Bjerke’s probationary license conditions.
Insurance Commissioner Jon Godfread commented on the situation, stating: “Licensed agents are prohibited from providing high-value gifts to consumers because it essentially boils down to bribing clients for business. Insurance should only be sold based on the competitive coverage options and premiums offered by an agent, not by those who can offer kickbacks in exchange for business.”
In North Dakota, licensed agents cannot provide monetary gifts, physical items, or entertainment activities over $100 in value to policyholders or prospective customers due to rebating restrictions. Such practices are illegal as they may give certain agents an unfair edge by incentivizing business through these means.
Agents are allowed to offer products or services that add value through risk mitigation, claims reduction, education provision, or health and financial wellness enhancement. However, concert tickets and pub tables do not meet these criteria.
The fine imposed on Bjerke is noted as the largest ever levied by the North Dakota Insurance Department against a licensed agent.
