Fargo Insurance Agent Fined by State Disputes Giving Kickbacks

Insurance Commission Jon Godfread. (Mary Steurer/North Dakota Monitor)

(North Dakota Monitor) – A Fargo insurance agent facing the largest fine ever imposed by the North Dakota Insurance Department says the state agency misrepresented what led to the fine.

Tyler Bjerke, a representative for Midwest Heritage Insurance and Valley Crop Insurance, has been fined $136,500 and his license to sell insurance in North Dakota has been placed on probation for four years for violating a law that limits gifts to clients and potential clients, according to the order finalizing the penalties.

The per person limit means insurance agents can give a gift of $200 to a client couple, Insurance Department spokesperson Jacob Just said.

The Insurance Department said Bjerke gave 182 pub-style tables to clients and potential clients valued at $213.95.

Bjerke doesn’t dispute the cost, but contends that he originally ordered the tables from China in July 2022 at a price of $199.95 per set. He said in September 2022, he was told that the price had gone up to $213.95 due to port fees and tariffs.

He said he tried to cancel the order but would have lost a $20,000 deposit.

“I made a business decision based on $14.95 over the gift allowance and thought that no one would care about $14.95,” he said in the email. “This was $2,720.90 over the limit and I was fined $136,500, $750 per violation.”

Insurance Commissioner Jon Godfread said in a statement that licensed insurance agents aren’t allowed to give 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,” Godfread said.

Bjerke said the pub tables were for clients with “man-caves, shops, lake homes, etc.” as a way to thank clients he considers family members.

“For the insurance commissioner to mention that gifts are kickbacks in exchange for business is a gross misrepresentation of what occurred,” Bjerke said.