April 2017

JEWELRY INSURANCE ISSUES (formerly IM News), provides monthly insight and information for jewelry insurance agents, underwriters and claims adjusters.

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Jewelry Insurance Issues

Table of Contents

Click on article titles in red

2017

Moral Hazard, Documents and the Bottom Line - January

Ruby and Jade - February

How to mail a diamond - March

Jewelry Insurance Appraisal Standards: JISO - April

Describing a gem's color - May

Why not just put jewelry on the Homeowner policy? - June

GIA Diamond Reports - July

2016

Inflated appraisals—alive & well! Shady lab reports—alive & well! MORAL HAZARD—ALIVE & WELL! - January

Clarity Enhancements v. Inherent Vice - February

How green is my emerald? - March

Cruise Jewelry - What's the problem? - April

Crown of Light ® - how special is it? - May

Diamonds at Auction — Big gems, big prices, and the trickle-down effect - June

Are you sure her wedding jewelry is covered? - July

What Affects Jewelry Valuation? - August

What to look for – on the jewelry appraisal, on the cert, and on other documents - September

Growing Bigger & Bigger Diamonds - October

Scam season is always NOW - November

Ocean Diamonds - December

2015

Pair & Set Jewelry Claims and the Accidental Tourist - January

Is that brand-name diamond a cut above the others? - February

Vacation Jewelry – Insurer beware! - March

Apple's Smartwatch – The risk of a wrist computer - April

Why you should read that appraisal - May

Smoking Gun! - June

Color-Grading Diamond: the Master Stones - July

Padparadscha—a special term for a special stone - August

Jewelry Appraisal Fees - September

Insuring a Rolex - steps to take, things to consider - October

Diamond camouflage and how to see through it - November

GIA Hacked! - December

2014

Who Grades? - January

Sales, discounts, price reductions, bargains, specials, mark-downs . . . . and valuation - February

Credential Conundrum - March

Frankenwatches - April

Fakes, fakes, and more fakes - May

Marketing Confusion — What is this gem anyway? - June

12 Reasons Not to Insure a Rolex! - July

Why NOT to insure a Rolex: Reasons 5-7 - August

Why NOT to insure a Rolex: Reasons 8-10 - September

Why NOT to insure a Rolex: Reasons 11-12 - October

The Doublet Masquerade - November

Is the gem suitable for the jewelry? Is this a good insurance risk? - December

2013

Wedding Rings on HO? NO! - January

Silver: the new gold - February

Point Protection - March

Tiffany v. Costco - April

What counts in valuing a diamond? - May

Appraising Jewelry - What’s a credential worth? - June

A Cutting Question concerning vintage diamonds - July

Synthesized Diamonds - Scam update - August

Pretty in Pink - Kunzite on parade... - September

Preventing jewelry losses - October

Scratch a diamond and you’ll find . . .??? - November

Synthetics in the Mix - December

2012

Advanced Gem Lab - A deeper look at colored gems - January

Whose Diamond? - February

Appraisal Inflation - It Keeps On Keeping On - March

Big Emerald - April

Changing colors and making gems: Are we seeing "beautiful lies"? - May

Diamonds - Out of Africa. . . or out of a lab? - June

Appraiser's Dream Contest - July

GIA & the Magic of Certificates - August

Pricey when it’s hot: What happens when it’s not? - September

Fooling With Gold - October

Tanzanite – December's stone - November

Branding Diamonds - What do those names mean? - December

2011

Unappraisable Jewelry - January

Replicas - Are they the real thing? - February

Composite Rubies- From bad to worse - March

Jewelry Hallmark - A Well-Kept Secret - April

Non-Disclosure: Following a Trail of Deception - May

Preserving the Diamond Dream - June

Spinel in the Spotlight - July

Jewelry 24/7 - Electronic Shopping - August

Diamond Bubble? - September

Disclosure: HPHT - October

"Hearts & Arrows" Diamonds - November

How a Gem Lab Looks at Diamonds - December

2010

Emeralds - And What They Include - January

Pink Diamonds: From Astronomical to Affordable - February

Palladium-the Other Precious White Metal - March

Bridal Jewelry - April

The Corundum Spectrum - May

How Photos Cut Fraud - and help the insured - June

The Price of Fad - July

Old Cut, New Cut-It's All about Diamonds - August

EightStar Diamonds-Beyond Ideal - September

The Hazard of Fakes - October

Jewelry with a Story - November

Counterfeit Watches - December

2009

Blue Diamond-cool, rare and expensive-sometimes - January

Turning Jewelry into Cash—
Strategy in a Bad Economy
- February

Enhancing the Stone - March

Being Certain about the Cert - April

Every Picture Tells a Story - May

Color-Grading Diamonds - June

The Newest Diamond Substitute - July

What Happens to Stolen Jewelry - August

Jewelry As an Investment - September

Black Diamond: Paradox of a Gem - October

Protect Your Homeowners Market—Keep Jewelry OFF HO Policies! - November

What’s So Great about JISO Appraisal Forms & Standards? - December

2008

Garnet - and Its Many Incarnations - January

Organic Gems - February

Do Your Jewelry Insurance Settlements Make You Look Bad? - March

Don't Be Duped by Fake JISO Appraisal - April

Diamonds in the Rough - May

The Cultured Club - June

Sapphire-Gem Superstar - July

It's a Certified Diamond! 
- But who's saying so?
- August

FTC Decides: Culture Is In! - September

Paraiba Tourmaline – What's in a Name? - October

How Fancy is Brown? - November

CZ – The Great Pretender - December

2007

Moissanite's New Spin - January

Online Jewelry - Buying and Insuring - February

Blood Diamonds - March

Damaged Jewelry, Don't Assume!- April

Chocolate Pearls - May

Appraisal Puff-Up vs Useful Appraisal - June

It's Art, but is it Jewelry?
- July

Diamonds Wear Coats of Many Colors - August

DANGER! eBay Jewelry "Bargains" - September

TV Shopping for Jewelry - October

Enhanced Emerald: clever coverup - November

How do you like your rubies -
leaded or unleaded?
- December

2006

The New Platinum: A Story of Alloys - January

Ruby Ruse - February

How Big are Diamonds Anyway? - March

GIA Diamond Scandal
Has Silver Lining for Insurers
- April

Watch Out for Big-Box Retailers Insurance Appraisals - May

Mixing It Up: Natural and Synthetic Diamonds Together - June

Tanzanite - Warning: Fragile - July

Red Diamonds - August

Inflated Valuations & Questionable Certificates - September

Emeralds - October

Where Do Real Diamonds Come From? - November

Counterfeit Watches - The Mushroom War - December

2005

The Lure of Colored Diamonds - January

Synthetic Colored Diamonds - February

Watches: What to Watch for - March

When is a Pear not a Pair? - April

The Truth About Topaz - May

White Gold: How White is White? - June

One of a Kind - or Not - July

Jewelry in Disguise - August

Valued Contract for Jewelry? Proceed with Caution! - September

Antiques, Replicas and All Their Cousins
October

Grading the Color of Colored Diamonds
November

New GIA Cut Grade for Diamonds - December

2004

Synthetic Diamonds - and Insuring Tips - January

Bogus Appraisals and Fraud - February

A Picture is Worth Thousands of Dollars - March

Don't be Duped by Fracture Filling - April

Gem Scams Point to Need for Change - May

What is a Good Appraisal - June

4Cs of Color Gemstones - July

Gem Laser Drilling: The Next Generation - August

Why Update an Appraisal? - September

When to Recommend an Appraisal Update or a Second Appraisal - October

Secrets of Sapphire - November

Will the Real Ruby Please Stand Up - December

2003

Mysterious Orient:
A Tale of Loss
- January

Bogus Diamond Certificates and Appraisals - February

Can Valuations be Trusted? - March

Spotting a Bogus Appraisal or Certificate - April

Counterfeit Diamond Certificates - May

Case of the Mysterious "Rare" Sapphires - June

Politically Correct Diamonds - July

Name Brand Diamonds - September

Princess Cut: Black Sheep of Diamonds - October

Reincarnate as a Diamond - November

Synthetic Diamonds - December

2002

Irradiated Mail/Irradiated Gems - January

Fake Diamonds (Moissonite) - February

GIA Diamond Report - March

AGS and Other Diamond Certificates - April

Colored Stone Certificates - May

Damaged Jewelry: Don't Pay for Nature's Mistakes - June

The Case of the "Self-Healing" Emerald - July

Mysterious Disappearance: Case of the Missing Opals - August

The Discount Mirage - September

What Can You Learn from Salvage? - October

Gaining from Partial Loss - November

Year in Review - December

2001

Colored Diamonds - January

Good as Gold - February

Disclose Gem Treatments - March

FTC Jewelry Guidelines - April

Myths Part I: Each Piece is Unique - May

Myths Part II: Myths, Lies, & Half-Truths - June

New Trend: Old Cut Stones - October

The Appraisal Process - November

Year in Review - December

2000

Deceptive Pricing - January

Gems - Natural or Manmade - February

Jeweler/Appraisal Credentials - March

Fracture Filling - April

Salvage Jewelery - May

Gem Treatments - June

Don't Ask/Don't Tell - A Buying Nightmare - July

Laser Drilling of Diamonds - August

Jeweler Ethics or the Lack Thereof - September

Gem Scam - October

The Truth about Clarity Grading - November

Year in Review - December

 

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Jewelry Insurance Appraisal Standards: JISO

Are you seeing jewelry appraisals like these?

 

Inflated valuation

Mounting info missing

Important info missing

Useless photo

Pre-fab gem ID card

These are not credentials

Gem treatments not disclosed

 

Appraisals with missing information, inflated valuations, treatments not disclosed.
Appraisals from appraisers with bogus credentials, or no credentials, or even no name.
Appraisals with grading reports from unknown labs, or on pre-fab "authenticity" cards.
Appraisals with useless photos or none at all.

There's no reason insurers should settle for this.

Jewelry Insurance Standards have been around since 1997.  Insurance industry approved jewelry appraisal forms, originally available through ACORD, are now available through JISO, free of charge at www.jiso.org.

What JISO Appraisals do

Following a standardized format, the JISO form prompts the appraiser for all information on any type of jewelry, so nothing is overlooked. If descriptive details are left off, the agent, underwriter or adjuster can see that something is missing.

The form also prompts for photos of the jewelry and for the sales receipt. These days, very good photos can be taken in a few seconds with a smart phone. The appraiser can photograph the jewelry and send pictures to customer and/or insurer.

JISO explicitly states that valuations are "an estimate of current replacement cost" – not some inflated "feel-good" valuation meant to please the client and fool the insurer.

JISO explicitly states that the appraisal is provided for the customer's insurer as well as to the customer.

JISO 78 and 79 must be written by an appraiser who is a qualified gemologist (GG, FGA+ or the equivalent) and has additional training in appraising for insurance (such as a Certified Insurance Appraiser™).

JISO 78 & 79 certify that this jewelry has been examined in a properly equipped lab. This means the appraiser is not just taking the word of seller or supplier as to quality, nor providing a pre-fab appraisal for a "type" of jewelry. 

The appraisal warrants that lab-made stones are identified as such, and that gem treatments are disclosed.

The appraisal uses the internationally accepted GIA grading system and terminology. It also shows the color-grading and clarity-grading scales, so the consumer (and insurer) can see where this diamond's grade falls. The appraiser will not invent terms or use an "in-between" grade to make the stone seem like better quality than it is.

JISO 806, Jewelry Document for Insurance Purposes, can be used by an appraiser who is not a GG with advanced training in jewelry insurance. It has the same organized layout as 78 and 79.

And here's a useful form for underwriters and adjusters. If you do not have an appraisal on a JISO form, you can use JISO 18 to organize the information you collect from the available docs—appraisal, gem reports, warrantees. Then you'll have, on a single sheet, all necessary details for pricing a replacement.

FOR AGENTS & UNDERWRITERS

JISO appraisals give the most detailed information, since they prompt the appraiser for important data that insurers need. Some appraisers incorporate the JISO form into their appraisals.

JISO's standardized format makes the insurer's job easier. Insurers need not understand jewelry terms or judge whether the information is accurate. Accurate information is the jeweler/appraiser's domain; insurers need only look at the standardized format to see that the information is given.

JISO 78/79 can be used only by a jeweler/appraiser who is a GG, FGA+ or equivalent, and who has additional insurance appraisal training. One course offering such additional training is the Certified Insurance Appraiser™ (CIA) course of the Jewelry Insurance Appraisal Institute. Consumers or insurers can use the JCRS website to find a CIA in their area.

If there is no CIA in the area, you can print out JISO 806 and suggest that the client take it to their jeweler/appraiser. This form, Jewelry Document for Insurance Purposes, can be filled out by any appraiser.

All JISO forms are available free of charge to jewelers, appraisers, insurers and consumers from www.jiso.org.

FOR ADJUSTERS

If you are working with a non-JISO appraisal, use JISO 18, Jewelry Appraisal & Claim Evaluation form, to organize data from various documents, such as appraisals, sales receipts, diamond certificates, colored gem reports, etc. You will then have one reference document with the fullest description possible.

If too much information is lacking and the valuation is substantial, consider consulting a jewelry insurance expert for help to avoid overpayment.

When pricing a replacement, use your JISO 18 evaluation. Do not give the replacement jeweler the appraisal valuation. Replacement quotes are generally 80-90% of the valuation, which may well be higher than retail if the valuation was inflated to begin with! You will get a more honest price if you have the jeweler submit a bid based on the jewelry's description rather than on the appraisal valuation.

 

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