Jewelry Insurance Standards
JCRS is the author and developer
of the ACORD/JISO Jewelry Standards and Forms
The problem: Unlike the insurance industry, which subscribes to its own ACORD Standards, the jewelry industry is fragmented among several different standards bodies, each with its own criteria. From a jewelry insurance point of view, that creates a problem; namely, which jewelry industry standards are the most useful for insurance purposes?
The process: Most people who purchase fine jewelry also purchase insurance. To properly insure an item of jewelry, an appraisal (or other documentation) typically accompanies the policy application. In turn, insurers use that information for making various determinations about the insurance coverage offered.
The result: Historically, and to a larger extent in recent years, many jewelry appraisals (if and when provided) have been notoriously inaccurate, incomplete, and inflated, resulting in three distinct concerns: 1) over-insuring the item of jewelry, which means 2) the insured ends up paying more for insurance than necessary, which can also mean that 3) the company overpays the jewelry settlement if a loss occurs and a claim is filed.
The JCRS Solution: Since its beginning in 1987, JCRS has championed the need for jewelry appraisals that meet insurance industry standards. JCRS authored and developed a number of products, programs, and services that eventually led to the adoption of the ACORD Jewelry Standards in 1997. These standards are so important that in 2005 they became part of an insurance industry trust, the Jewelry Insurance Standards Organization (JISO).
ACORD/JISO Jewelry Standards include several features:
Standardized forms for use by insurance professionals as well as certified appraisers and jewelers:
- ACORD 78 (now JISO 78) - Jewelry Insurance Appraisal - Single Item. Form 78 contains a single jewelry item, and the jewelry descriptive content allows for seven stone groupings. This form may be used alone or in combination with form 79 by jewelers (who are Graduate Gemologists and Certified Insurance Appraisers) to provide appraisal information about jewelry. (ACORD/JISO 78 instructions)
- ACORD 79 (now JISO 79) - Jewelry Insurance Appraisal. Form 79 allows for up to two jewelry items per page, and up to two stone groupings. This form may be used by jewelers (who are Graduate Gemologists and Certified Insurance Appraisers) to provide appraisal information about jewelry. (ACORD/JISO 79 instructions)
- ACORD 805 (now JISO 805) - Jewelry Receipt for Insurance Purposes. This form can be used by the insured's selling jeweler to document the price paid for the item and to provide the insurer with the necessary descriptive information about sold jewelry. This form is not an appraisal. (When an appraisal is required, jewelers who are Graduate Gemologists and Certified Insurance Appraisers can use form 78 or form 79). Form 805 is intended to be used by jewelers who do not meet the higher education and training requirements set forth in the 78 and 79 forms. The descriptive content is the same, however, providing necessary information for the scheduling of typical jewelry items of lower value, for which the underwriter does not require an appraisal. (ACORD/JISO 805 instructions)
- JISO 806 – Jewelry Document for Insurance Purposes. This form can be used to provide the necessary descriptive information about jewelry for insurance purposes. It is intended to be used by jewelers who do not meet the higher education and training requirements set forth in the ACORD/JISO 78 and 79 appraisal forms. The descriptive content is the same, however, providing necessary information for the scheduling of typical jewelry items. (JISO 806 instructions)
- ACORD 18 (now JISO 18) - Jewelry Appraisal and Claim Evaluation. This form can be used to assist in determining the adequacy of content of a jewelry appraisal submitted to an underwriter or as a part of a Loss Report. It contains the minimal information necessary to determine jewelry value. Form 18 should not be necessary if the appraiser used either the 78 or 79 Jewelry Appraisal forms or if the seller completed the form 805 Jewelry Sales Receipt. Form 18 can be used to verify key information and aid in policy typing. (ACORD/JISO 18 instructions)
- ACORD 154 (now JISO
154) - Jeweler's Inventory Record. This inventory card
is a tool for use by jewelers to address the problems associated with Jewelers
Block inventory and record keeping requirements. It is a simple, concise,
manual recording system and is compatible with most computer systems. The
front of the card provides a standardized item description that meets insurance
industry provisions and aids in appraisal preparation. It supplies data
for complete sales analysis and flexible recording. The card tracks inventory
location and item status (layaway, consignment, etc.), and it allows cost
analysis of the complete piece and of its component parts. The back of the
card is for keeping track of jewelry items made up of several inventory
items (MakeUp) or for tracking components when a single item is broken up
into its component parts (BreakUp). (MakeUp - BreakUp is a trademark of
JCRS, Jewelry Underwriting & Claim Mitigation.). The cards will fit
any standard 3 x 5 inch card file system. (ACORD/JISO
154 instructions)
A Certified Insurance Appraiser™ training course that elevates the professional credentials of Graduate Gemologists with three years experience by training them to prepare jewelry appraisals to insurance industry standards.
A Jewelry Insurance Workshop (Jewelry 101, 8 hours C.E. credit) that trains agents, CSRs, underwriters, and adjusters in jewelry basics, industry practices, gemology fundamentals, appraisal practices, and ACORD Jewelry Appraisals.
XML Inland Marine Standards that facilitate electronic processing of information related to Inland Marine coverage.
Multi-part MIME attachments (non-text documents, such as photos of scheduled jewelry) to accompany electronic applications (within an ACORD XML message) for coverage.
The goal
Ultimately, ACORD and JISO Jewelry Standards, including the tools and training associated with them, enable the insurance industry to save money and improve customer satisfaction through efficient and effective jewelry insurance processing solutions.
Visit the ACORD site. Visit the JISO site.