There are varying forms of insurance fraud but more importantly here, there are also many strict laws in each state concerning the licensure and regulation of insurance producers and agents. The enforcing agency (whether it be the local prosecutor, or state attorney general or insurance department) must determine first the accurate facts and see exactly how the insured obtained the insurance, how he got paid and by what means. The payment of compensation to someone who is not a licensed insurance agent may be considered (dependent on the circumstances) an unfair and deceptive act. You could simply file a tip with the Department of Insurance in Minnesota and you can also look up any enforcement actions that agency has file against insurance companies. Falsifying a sale of an insurance policy to manipulate a commission could be seen as a criminal act and could also be suitable by the agency to file an administrative enforcement action against the agent.