Views on Jewelry Replacement
Thursday, December 20th, 2001 PropertyIn your August “For the Record,” Ron Kaiman discussed (his) “new paradigm” for jewelry claims. The column states that “claims representatives have no training in gemology or jewelry evaluation.” He then states that the practice of claims adjusters relying on replacement vendors for pricing “is not a sound purchasing strategy.” Kaiman also makes a statement that retail jewelers commonly use mark-ups of 200 to 400 percent, and replacement vendors may compare the savings they offer to inflated retail values. He then suggests that the industry should change from the “traditional paradigm” to the “modern paradigm.” He recommends that claims departments should hire an individual to review and negotiate with jewelry replacement vendors, settlement prices on jewelry and diamonds.
