Fargo Insurance Agent Fined for Violating State Rebating Laws

(North Dakota Insurance Department image)

(KNOX) – A Fargo insurance agent has been fined $136,500, and their license to sell insurance in North Dakota has been placed on probation for four years for violating the state’s rebating laws, prohibiting insurance agents from providing gifts valued at over $100 per year to clients or potential clients.

Tyler Bjerke was penalized following an investigation by the North Dakota Insurance Department. It was uncovered that Bjerke gifted 182 pub-style tables to clients and potential clients, calculated by the Department to have a retail value of $213.95 per table. As part of a settlement agreement, Bjerke was penalized for the tables.

The investigation also discovered Bjerke hosted a Sawyer Brown Band concert in February 2023 with free admission to clients and potential clients, calculated by the Department to exceed the $100 limit. Prosecution of the 2023 Event was deferred under the conditions of Bjerke’s probationary license.

“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,” said Insurance Commissioner Jon Godfread.

Licensed agents in North Dakota are prohibited from providing monetary gifts, physical gifts, or entertainment activities valued at over $100 to existing policyholders or potential clients, which is known as rebating. Rebating is illegal in North Dakota, which can give agents an unfair competitive advantage by incentivizing new and existing businesses.

Producers may offer value-added products or services designed to mitigate risk, reduce claims, provide education or enhance health or financial wellness. Concert performances or pub tables, in this instance, do not qualify under these provisions.

The $136,500 fine imposed on Bjerke is the largest fine the North Dakota Insurance Department has levied on a licensed agent.