Frequently Asked Questions
- I’m a jewelry appraiser; why would I want to become a JIBNA insurance agent?
- Isn’t it a conflict of interest for an appraiser to also be the jewelry insurance agent?
- Won’t an appraiser who is also an agent be tempted to inflate the appraisal?
- Will I have to “push” jewelry insurance?
- Isn’t jewelry already covered by the customer’s Homeowner’s insurance anyway?
- What are the advantages of a JIBNA policy?
- Will I be competing with general insurance agents?
- Since JIBNA doesn’t require appraisal updates, won’t I be losing appraisal business?
- What about fees?
- How does JIBNA support its agents?
I’m a jewelry appraiser; why would I want to become a JIBNA insurance agent?
Insurance agents earn a commission when a policy is written and again each year when it renews. This means an increasing revenue stream from year to year.
You are in the perfect position to enter a profession that uses your jewelry expertise and organically blends with your appraisal business. While you may now be answering your clients’ questions regarding insurance, did you know that giving such counsel is against the law in all states? Only a licensed agent is allowed to give insurance advice.
As an appraiser who is also a licensed agent, you can write the appraisal, counsel your clients about their jewelry, and then offer them the best jewelry insurance. As an agent, you submit insurance applications and reap the rewards.
Isn’t it a conflict of interest for an appraiser to also be the jewelry insurance agent?
Jewelry appraiser and jewelry insurance agent are complementary professions, enabling you to offer two services to your clients. Many of your appraisal clients will also be seeking insurance on their jewelry. There is no conflict of interest in also being their jewelry insurance agent, since the agent /appraiser does not determine premiums, make underwriting decisions, or control settlements.
There is nothing in an appraiser’s code of ethics that forbids having two related jobs. A retail jeweler is often an appraiser, providing his own appraisals for the jewelry he sells. Similarly, if a consumer comes to a jeweler for an appraisal, it is hardly unethical for the jeweler to encourage the consumer to browse the jewelry cases. If the consumer then decides to purchase jewelry, the jeweler/appraiser will sell it.
Won’t an appraiser who is also an agent be tempted to inflate the appraisal?
Unethical retailers and appraisers sometimes supply appraisals with valuations far above the selling price, saying the appraisal is “for insurance.” They assume, and convey to the customer with a wink, that this is to the customer’s advantage. It is not.
JIBNA uses patented proprietary software which accurately calculates the jewelry’s ITV, or insurance to value (the amount of insurance appropriate to the value of the jewelry). The ITV is based on descriptive information from the appraisal.
The ITV calculation influences the insured value of the jewelry and, thereby, the premium. Similarly, a claim settlement is based on the insurance company’s ITV calculation at time of loss. All of this is controlled by regulatory audits.
Since the appraiser/agent does not determine premiums or settlements, there is little temptation to exaggerate valuations. An inflated valuation benefits neither the appraiser nor the consumer.
An accurate gemological description, along with encouraging periodic inspections for potential damage, is the best service an appraiser can offer the customer.
Will I have to “push” jewelry insurance?
Most consumers who own quality jewelry want it to be covered by insurance. The appraiser’s clients will either be seeking insurance, or they will assume their jewelry is already covered. The latter choice might be a costly error, which an appraiser who is knowledgeable about insurance could help the customer avoid.
Isn’t jewelry already covered by the customer’s Homeowner’s insurance anyway?
Many consumers assume all their jewelry is covered by their Homeowners policy. Unfortunately, the typical general insurance agent may assume this as well. But Homeowners policies have coverage limits as to value, and they exclude some perils altogether; jewelry breakage, for instance, would not be covered.
What are the advantages of a JIBNA policy?
JIBNA offers a standalone jewelry policy that is independent of the homeowner’s policy. It provides broader jewelry coverage than typical HO policies (and most other jewelry policies). Also, a standalone jewelry policy means that a jewelry loss does not count as a Homeowner’s loss, allowing clients with a jewelry claim to retain their “claim-free” Homeowner’s status (a very big deal!).
In addition to highly competitive rates, JIBNA offers premium discounts of up to 5% per year.
Will I be competing with general insurance agents?
As an appraiser who is a licensed insurance agent, you will focus exclusively on jewelry insurance. You’ll have more incentive to study the details of jewelry coverage and more time to discuss options and benefits with clients.
Most general insurance agents have little expertise in jewelry insurance and the choices available. Many who do not offer standalone jewelry policies would be happy to recommend their clients to an “authority” who specializes in jewelry. Such recommendations could also lead to new appraisal customers, as well as to insurance business.
Since JIBNA doesn’t require appraisal updates, won’t I be losing appraisal business?
Although JIBNA does not require appraisal updates, your position as a JIBNA agent presents opportunities for customer contact and potential business unavailable to other appraisers.
- Each year JIBNA mails a notice of renewal to the agent, as well as to the customer. This gives you the opportunity to contact your customer and inquire about any new jewelry purchases that might need appraisals (and insurance).
- As an insurance agent, you have an ongoing connection with the customer. When a new piece of jewelry is acquired, the customer will be much more likely to come to you rather than go to another appraiser.
- JIBNA agent/appraisers can establish relationships with local agents who offer general insurance but don’t offer a standalone jewelry policy. You can both gain customers by recommending each other.
- Advertising yourself as both an appraiser and a jewelry insurance agent makes you more visible. Customers who need either service—or both services—will choose you.
You will charge your usual appraisal fee, whether or not the client buys insurance.
As an insurance agent, you are compensated by commission (and by law may not charge an additional insurance fee). You receive a commission when the policy is written and each year when it renews. The conditions and amount of the commission are set by the state (not by the appraiser/agent). The commission is paid by the insurance company (not by the customer).
How does JIBNA support its agents?
JIBNA offers extensive support to help agents work efficiently, improve customer relationships, and grow their business. Our online training videos help new agents get up to speed. Agents receive consumer brochures, a marketing guide written specifically for JIBNA agents, artwork for business cards, and a monthly newsletter with information and marketing tips. Please explore here for more details.
