Fargo insurance agent fined by state disputes giving kickbacks  • 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. 

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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.

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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. 

The Insurance Department also found that Bjerke hosted a concert by the band Sawyer Brown in February 2023 with free admission to clients and potential clients, with the value also exceeding the $100 limit. Prosecution of that case was deferred as a condition of Bjerke’s license being placed on probation.

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Bjerke said the band was booked as part of a company and client celebration after a day of training sessions that included updates from the U.S. Department of Agriculture, which administers crop insurance programs, and U.S. Sen. John Hoeven, R-N.D., a crop insurance advocate. He said there were no tickets to the event.

He said he tried multiple times to meet with the Insurance Department and complied with their request for four years of company records. 

He said the Insurance Department has a vital role to play in creating an equal playing field for North Dakota insurance agents but he said he believes his agency was targeted.

Jeff Kleven, executive director Independent Insurance Agents of North Dakota, said these kinds of violations should be taken seriously and can hurt the reputation of the industry. 

Kleven said every licensed insurance agent is aware of the rules on gifts.

“It’s part of the test,” he said.