Fargo, ND – A Fargo insurance agent has been heavily fined and placed on probation after violating North Dakota’s strict rebating laws. Tyler Bjerke, a licensed insurance agent, was penalized $136,500 and had his license placed under probation following an investigation by the North Dakota Insurance Department.
The investigation revealed that Bjerke had provided 182 pub-style tables, each valued at $213.95, to clients and potential clients—significantly exceeding the state’s $100 per year limit on gifts. In addition, Bjerke was found to have hosted a Sawyer Brown Band concert in February 2023, offering free admission to attendees, which also violated the rebating law.
North Dakota’s rebating laws are designed to prevent agents from offering high-value gifts, entertainment, or other incentives that could improperly influence consumers’ insurance decisions. The laws prohibit agents from providing gifts, monetary offerings, or entertainment valued over $100 per year to current policyholders or potential clients. The intention behind these regulations is to ensure that insurance sales are based on the quality of coverage and competitive premiums, rather than incentives that could skew a customer’s choice.
Jon Godfred, the North Dakota Insurance Commissioner, explained that the laws are in place to avoid any situation that could be perceived as bribery. “Licensed agents are prohibited from providing high-value gifts to consumers because it essentially boils down to bribing clients for business,” Godfred said. “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.”
Although rebating is not allowed in North Dakota, agents can still offer products and services that add value to their clients, such as those that mitigate risks, reduce claims, or enhance financial or health well-being. However, the offering of gifts or entertainment with a value greater than $100 remains strictly prohibited.
This case serves as a reminder to insurance professionals that compliance with state regulations is critical to maintaining trust and integrity in the industry. The North Dakota Insurance Department’s action underscores the importance of ethical business practices and the prevention of improper influence in consumer decision-making.
