After entering into an undertaking with the Insurance Council of British Columbia in March 2022 which stated that he would be prohibited from soliciting or engaging in insurance activity with any persons undergoing treatment of addiction services and those with less than five years of sobriety, Jonathan William Valetta reportedly breached that undertaking, earning a six-month suspension from the regulator, along with other sanctions.
Valetta is also being sanctioned for writing ‘no’ on an application where the insurer asks the client if they have ever been treated for drug or alcohol use or been a member of a support group.
“Whether intentional or an honest mistake, the licensee has a responsibility to carefully read and provide accurate information on an insurance application,” the intended decision in the case states.
The council began its investigation into Valetta’s conduct after receiving two complaints – one indicating that Valetta recruited the client “for a financial business opportunity,” while he was in a Narcotics Anonymous (NA) meeting. The other complaint indicated that Valetta was recruiting clients from the recovery community. One client identified in the investigation by cross referencing the list of names provided by the second complainant, against Valetta’s client list, was the client whose application was filled out incorrectly.
Although Valetta stated that he informed the first client that he was unable to help him, he admitted to helping the client join the agency. “The licensee stated that he did not believe he violated the undertaking because he did not disclose specific product details or try to sell insurance products to JC,” the intended decision in the case states.
JC’s assertion, meanwhile, is that he approached Valetta for information about a high interest savings and insurance product. Valetta then reportedly shared the recruitment opportunity with JC during an NA meeting. “The licensee refused to explain his association with the agency. He also stated that the licensee made claims of obtaining annual rates of return from 15 per cent to 20 per cent, although the licensee later admitted that these rates could not be guaranteed year after year.”
When questioned, Valetta explained to council investigators that he only discloses his agency affiliation if the client asks – a habit the council found “troubling.”
In addition to his six-month suspension, Valetta must secure a qualified life and accident and sickness insurance agent to supervise him for a period of one year of active licensing. He was also assessed the council’s investigation costs in the amount of $2,362.50 and ordered to complete an ethics course, prior to being reregistered.
