3 replies to this topic

[xmasdaisy]

8 years ago, my husband purchased a .956ct round diamond solitaire (H color, SI2 clarity) set in platinum. Last month, I took it to a neighborhood jeweler to have it cleaned, when he informed me the diamond was cracked (before he ever took the ring out of my sight). I then sent it to my insurance company, who confirmed the crack. I have no earthly idea how I may have done that. Anyway, the insurance company is now telling me the diamond was an I1 clarity and will only replace it as such. I'm completely floored and not sure what to do, as the difference is about $1,000 (not including the fact that we have been paying insurance rates on a higher clarity for the past 8 years). The jeweler that appriased it has been in business for 30 years (with good reputation). When my husband purchased the stone, he examined it prior to it being set and doesn't remember seeing any naked eye inclusions. How do I know that the stone can be accurately assesed by the insurance company given the damage? Should I pay to send it to the GIA laboratory to settle this? Can GIA even do something like that or should I just accept the fact that we're out a thousand dollars?
Thanks in advance for any input.

-the insurance gemologist report says "The diamond has an obvious internal stress fracture that breaks the surface. No interrupted polishing lines are noted. There are 2 areas on girdle edge that display a dull yellowish cloud, one of these areas is translucent to opaque, because of this cloud. I have not noted this in a diamond before...There is no doubt the diamond has received some sort of trauma to damage the stone internally though. I see the diamond was insured as SI2 clarity, but there are other inclusions and the yellow cloud that were too prominent to give a true clarity grade any higher thatn I1"

Edited by xmasdaisy, 26 July 2007 - 10:39 AM.

[denverappraiser]

Yes, it’s possible to make an estimate of a pre-damaged condition. This is a mainstay of forensic gemology. Your real issue boils down to 2 topics.

First, who called it SI2 in the first place and what documentation was provided about this? The insurance company bound a policy on the strength of this and at the time of underwriting they agreed that it was an SI2. Changing their mind after the fact based on a report written by one of their employees is decidedly unusual. There is a huge conflict of interest here. “Dull yellowish cloud" that he’s never seen before. What kind of gemological report is that? Who is this insurance company? Who is this gemologist?

Second, you need to find out what the dull yellowish cloud is. When and where did it come from? Was it noted on the original appraisal or lab report?

GIA doesn’t do this kind of work. Find an Independent Certified Gemologist Appraiser. There’s a list of us at www.ags.org.

Neil

[xmasdaisy]

The jeweler provided a written appraisal on a basic Jewelers appraisal form with his store information and his signature. I do not have a GIA or AGL certificate. However, that's all the insurance company required to insure it. The insurance company is USAA (I thought very reputable) and the gemologist states the initials 'G.G' after his name and works for USAA. This "dull yellowish cloud" was not noted on the original appraisal. If I'm understanding you correctly, I should look up an Indepedent Certified Gemologist Appraiser and have the ring sent there?

Thank you again, for your input.

[denverappraiser]

Yes. If you're lucky enough to have one in your state (there are only 13 of us in the whole country), use them. Otherwise use whoever you think will best be able communicate with you.

USAA is a decent enough company in general but they have a very different approach to jewelry insurance. They own a jewelry store and they send you something from their store. Theoretically this would work out ok but there is a huge incentive for the store to convince you to accept something that they can buy cheaply. The real solution to this is to get a proper appraisal in the first place but I understand that it's too late for that now and you need to get an 'independent' opinion as to the pre-loss condition. The only credentialed appraisers that have this as one of the requirements are the ICGA's. It's worth noting that the burden of proof is on the insurer since they accepted the SI2 grade at underwriting and they are now the ones who are arguing that it was in error.

Ask to talk to a manager at the claims office first. I've done a fair amount of this sort of work and it's pretty unusual for them to second-grade a damaged stone and the contents of the 2nd report are a bit out of the norm as well. (Mind you, it might be correct, I'm just pointing out that it's unusual). They may just approve you for an SI2 without a struggle. Make sure to get an appraisal on the stone they provide. It would be a shame for them to agree to an SI2 and to have the folks give you an I1 anyway.

Neil

Edited by denverappraiser, 27 July 2007 - 10:31 AM.