Fargo Insurance Agent Faces Record $136,500 Fine for Gift Violations

BISMARCK, N.D. — A Fargo insurance agent is facing the largest fine ever imposed by the North Dakota Insurance Department after allegedly violating state laws limiting gifts to clients. Tyler Bjerke, a representative for Midwest Heritage Insurance and Valley Crop Insurance, has been fined $136,500 and placed on a four-year probation for exceeding gift limits, according to a final order from the department.

The violations stem from Bjerke giving 182 pub-style tables to clients and potential clients, valued at $213.95 each. State law caps gifts at $200 per person or $100 per individual in a client couple. Bjerke acknowledged the cost but argued that the price increase was due to port fees and tariffs. He said canceling the order would have cost him 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,” Bjerke said in an email. “This was $2,720.90 over the limit, and I was fined $136,500, $750 per violation.”

Insurance Commissioner Jon Godfread emphasized that high-value gifts can undermine fair competition. “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 in a statement.

Bjerke defended the gifts, saying the tables were intended for clients with “man-caves, shops, lake homes, etc.” as a gesture of gratitude. “For the insurance commissioner to mention that gifts are kickbacks in exchange for business is a gross misrepresentation of what occurred,” he said.

The Insurance Department also found that Bjerke hosted a free concert by the band Sawyer Brown in February 2023 for clients and potential clients, exceeding the $100 limit. Prosecution of that case was deferred as part of Bjerke’s probation agreement.

Bjerke said the concert was part of a company and client celebration following training sessions that included updates from the U.S. Department of Agriculture and U.S. Sen. John Hoeven, R-N.D. He added that there were no tickets to the event and that he had complied with the department’s request for four years of company records.

Jeff Kleven, executive director of Independent Insurance Agents of North Dakota, said such violations harm the industry’s reputation. “Every licensed insurance agent is aware of the rules on gifts. It’s part of the test,” Kleven said.

The case highlights the state’s strict enforcement of anti-rebating laws, which aim to ensure fair competition among insurance agents. Bjerke’s fine marks a record penalty in North Dakota’s insurance industry.