14-12 JII Suitable for Jewelry
draft 2.1 12/20/14
Is the gem suitable for the jewelry?
Is this a good insurance risk?
All kinds of gems are used in jewelry. But not all
gems are suitable for all kinds of jewelry. From an
insurer’s point of view, some can be accidents
waiting to happen.
Here are some examples of what a good appraisal
for insurance should tell you—but usually does not.
Poor toughness (durability) rating
Toughness describes a gem’s vulnerability to cracking or chipping under impact. Even
diamond, which has a fair-good toughness rating, can chip—as insurers are well aware.
But stones with poor toughness ratings, such as topaz or tanzanite, can chip fairly
easily. These are not good candidates for a ring or bracelet, where they’re likely to be
knocked against objects that could damage them. In earrings, however, they would be
quite safe.
Ideally, the appraisal for a ring with a gem of low toughness should mention the need for
special care to avoid damage. This notice would remind (or inform!) the owner that the
stone chips easily, and it would also caution the insurer about the higher-than-average
risk.
Low hardness rating
Hardness refers to a gem’s resistance to scratches.
Diamond (rated 10 on the Mohs scale) is the hardest of
gems. Although diamond can chip, as indicated by its
middling rating for toughness, diamond’s hardness makes
it difficult to scratch except by another diamond.
Gems of low hardness, such as pearl, opal, jade and
coral, are by nature very sensitive to surface damage and
require special care to keep them safe.
Soft gems can be harmed by exposure to common
household chemicals like bleach or vinegar, by perfumes and body lotions, and even by
acid from the skin. Since such gems can easily be damaged, it’s recommended to store
the jewelry in a cloth bag to keep the gem from being scratched by other jewelry.
Because vulnerability to surface damage is the nature of the gem, such damage would
be considered normal wear and tear, for which the insurer is not liable.
Mounting issues
Sometimes the shape of a gem makes it vulnerable to damage. This is where the
mounting can come to the rescue. Marquise, princess and pear diamonds have sharp
corners that could easily be chipped. A conscientious jeweler will put a gem in a setting
that protects corners, a thin girdle, etc.
Tim: Pick up illustrations from
http://www.jcrs.com/JCRS_for_consumers/jewelry_information/diamonds/diamonds_cutting.htm
Can you make these illustrations come out black rather than gray?
Captions:
Marquise
Princess
Pear
If the mounting of a stone is not sufficient to keep the gem in place and safe, if the
mounting has loose prongs or if the gem’s corners are not protected, that should be
mentioned on the appraisal. A poor setting greatly increases the risk of damage or loss
of the stone.
Tim: remove gray background from top pic.
Keep pictures together.
Fracture-filling treatment
Highly fractured gems are not solid and so are vulnerable to
breakage. The fractures are often filled with some non-gem
material to make them less visible, but they are still fractures and
the stone is still weak. The fracture-filling treatment is especially
common with emeralds, because emeralds are by nature highly
fractured.
Fracture-filled stones can be damaged by heat (such as hot water
used in washing dishes), air pressure changes (as in an airplane
cabin), or chemicals. If the fill material breaks down, the fractures
will again become apparent.
Caption: Fracture-filled emerald
Fracture-filling should always be noted on the appraisal because it has a serious effect
on durability and valuation! Sometimes appraisals or sales documents use the term
“clarity enhanced”, suggesting that something’s been done to make the stone better. In
truth, the treatment has only made the stone look better, better than it really is.
Insurers should be aware that fracture-filling, or clarity enhancement, signals a
weak stone that is vulnerable to breakage. It is inherent vice.
The risk of damage is so great that some insurers have chosen not to insure any
fracture-filled stones.
Composite Stones
Composite rubies have been big news for the past few years,
ever since Macy’s was sued for selling them. Described by some
as fracture-filled rubies on steroids, these stones often have more
lead-glass filling than ruby material and would fall to pieces if they
were heated and the glass oozed out.
The red stone at right is a composite ruby. The picture below it shows a
large piece of the yellow lead-glass used in the treatment oozing out of a
piece of ruby rough.
Caption for lower pic: Photo by Fred Kahn and Sun Joo Chung of AGL
Composite rubies ought not to be in jewelry at all, since the likelihood of
damage is so high. Insurers should not insure them.
FOR AGENTS & UNDERWRITERS
The discussion above covers only some of the situations that affect insurance risk. A
conscientious jeweler or appraiser will tell the jewelry owner of any conditions that
require special care or precautions to keep the jewelry safe.
Ideally, such information should also be on the appraisal, stated prominently and not
buried in fine print of appraisal boilerplate. The special care need not be described, but
a note about the requirement for care would be a signal to the
insurer.
Meanwhile, some things to look for on the appraisal:
 “Composite ruby” – high likelihood of damage, do not insure!
 “fracture-filled” or “clarity enhanced” – we recommend not to
insure
 Princess, marquise, or pear diamond – check picture: are
the points of the gem protected in the setting?
Caption: Marquise diamond with points protected in setting
Tim: this pic should be near the 3rd bullet.
Recommend that your clients get a detailed appraisal on JISO 78/79 form, written by a
trained gemologist (GG, FGA+, or equivalent) 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.
FOR ADJUSTERS
Tim: note italics below
Study the appraisal and other documents for such words as treated, enhanced, clarity
enhanced, lead-glass enhanced, fracture filled or composite. This is crucial information
when you are pricing a replacement.
Clarity-enhanced, or fracture-filled, stones are worth far less than untreated gems of
similar appearance. Use every means possible to determine whether or not the gem
has been fracture-filled.
For damage claims, ask the policyholder whether the jewelry has recently been cleaned
or the gem reset, or whether it had been exposed to such common household solvents
as bleach, ammonia or lemon juice. Fracture-fill materials often discolor or break down
under the stress of heat or chemicals, causing the stone to appear damaged. In such
cases, it's really the filling that's been damaged and the insurer is not liable.
Normal wear and tear may significantly alter the appearance of gems with low hardness
ratings.
If you are unsure about whether damage was due to inherent vice, you may want to
consult a jewelry insurance expert.