The Replacement Process

Once all loss verification paperwork has been completed, the job now becomes determining what the lost or stolen jewelry items can be replaced for with "like kind and quality" product.

Because jewelry is a specialized business requiring specific skills and training, it will be necessary to obtain quotes from trained replacement sources. These prices should be obtained in writing and be included in the file with all other documentation.

Quite often, the lack of information at this point will require the replacement company to meet with the insured to verify the descriptions of what he owned. This is normally done by showing the insured pictures or actual jewelry samples similar to what was lost or stolen.

In these cases, when the information provided by the insured is incomplete or the appraisal is bad, and an appointment with a jewelry replacement specialist is required, the following introduction process is suggested.

"To obtain more Information about the jewelry you lost so that we can establish current market values, a jewelry specialist will be calling you within the next 24 hours to review the missing items with you."

Once the quote is received from the replacement company, you will have the information you need to make a settlement.

The policy holder at this point may be prepared to proceed with replacement of the lost jewelry with like kind and quality" or with items of similar value. Once this process is complete, you will receive a release or authorization to pay form signed by the insured. A check can then be issued directly to the replacement source.

If the insured insists on cash, the settlement should be based on the quote to replace with "like kind and quality.' Quite often, in the case of a cashout, the insured will receive a letter from the replacement company giving him 90 days to replace part or all of what he owned at the preferred pricing which the insurance company receives.

POINTS TO HIGHLIGHT

NO OBLIGATIONS. The insured is not under any obligation to use the replacement company. This is simply a necessary step in obtaining more information from which to make a settlement.

CONVENIENCE. To make things convenient, the policyholder can either visit a local showroom facility or a representative will come to their home or place of business.

SECOND OPINION WELCOMED. If the insured wishes, he is certainly free to consult with a local jeweler in addition to meeting with the replacement company.

FAIR VALUE ASSURANCE. Even if "cash" is the desire of the insured, this is a necessary process in establishing value. It is in everyone's best interest.