April 2006

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

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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

Not just a pretty face - August

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

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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GIA Diamond Scandal
Has Silver Lining for Insurers

Last year's scandal over inflated grades on diamond reports led to deep changes within the GIA, changes that benefit both insurers and consumers.

The Gemological Institute of America was sued last year for accepting bribes in return for inflating color and clarity grades on some certificates. The scandal had the jewelry industry in turmoil, as the GIA is the most respected organization in diamond grading. GIA's reputation was on the line.

Ultimately the suit was settled. GIA fired four employees responsible, and it informed diamond dealers who violated its code of ethics that it would no longer do business with them. To avoid any appearance of impropriety, the GIA will no longer solicit or accept donations from dealers whose stones are graded in the lab.

More important to the public, GIA took a close look at its procedures and made some changes.

Cost of a Diamond Report

GIA used to offer memberships to help support its lab, and members would get discounted prices on their diamond reports. For example, a diamond dealer, who would want certificates for the hundreds of gems he trades trade each year, could donate to the non-profit in return for member status and then pay a discounted price for each report. A jewelry consumer, who needed just a single report on a diamond he'd purchased, would pay more for the report.

GIA has discontinued the membership price structure. Under the new system, reports are priced according to the weight of the diamond. The rates (shown below) are available on the GIA web site for all to see, and the rates are the same for everyone — supplier, dealer, retailer, consumer, insurer.

Weight (CT)
Fee
Weight (CT)
Fee
0.18 to 0.22
59
6.00 to 7.99
482
0.23 to 0.46
53
8.00 to 9.99
570
0.47 to 0.69
64
10.00 to 11.99
791
0.70 to 0.99
78
12.00 to 14.99
928
1.00 to 1.49
100
15.00 to 19.99
1,138
1.50 to 1.99
110
20.00 to 24.99
1,484
2.00 to 2.99
154
25.00 to 29.99
1,732
3.00 to 3.99
217
30.00 to 39.00
2,102
4.00 to 4.99
288
40.00 to 49.00
2,474
5.00 to 5.99
409


Report Verification Service

Since GIA certificates are the most highly regarded, there is always the risk of getting a counterfeit.

Earlier this year one buyer found himself with two counterfeit GIA reports, which he'd received with purchases. Subsequent appraisals revealed the diamonds to be of lower color and clarity than listed on the GIA reports and to have been treated. It turned out the GIA had done reports on the diamonds, and had included the correct information, but the reports the buyer received were not the original GIA certificates.

Sometimes the scams are quite broadly based. In 2003 the GIA notified law enforcement that counterfeits of its certificates were being sold on the Internet. Who bought those certificates? In what insurers' files do they now rest?

As a counter to such frauds, GIA's new report verification service is a boon to consumers and insurers. By supplying the report number and carat weight of a stone, you can quickly confirm that the information on your report matches what is archived in the GIA report database. You can even get a copy of the report.

Reports can be verified either online or by phone (760-603-4500 ext. 7590).

Any buyer who receives a GIA report other than directly from GIA can confirm its authenticity. Every adjuster can confirm the authenticity of a GIA report before paying a claim based on information found there.

Recertifying Diamonds

Because the negative publicity last year had some customers worried that their own certificates carried incorrect information, GIA offered to recertify any diamonds at no charge during the first six months of 2006. The diamond must be loose and the original certificate must be from GIA. This offer expires at the end of June.

FOR AGENTS & UNDERWRITERS

GIA diamond reports are considered the most reliable certificates available—as long as they are not counterfeit or altered. If a certificate comes from any source other than the GIA itself — say from a seller on the Web, from a pawnbroker, from a private sale, from the selling jeweler — it is wise to verify the authenticity of its information with the GIA either online or by phone (760-603-4500 ext. 7590).

FOR ADJUSTERS

Never base a claim on information from a GIA report without verifying the authenticity of the report. You can do this quickly either online or by phone (760-603-4500 ext. 7590).

In dealing with damaged jewelry for which there is a diamond report or appraisal, be sure to have the jewelry examined by a Graduate Gemologist, preferably a Certified Insurance Appraiser™. This should verify the identity of the damaged stone as the stone described in the report or appraisal.

 

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