Can an appraiser be nothing more than a GG LEGALLY?

[Nicrez]

I met an appraiser who is just graduated from GIA not three years and they are writing appraisals (personally) for their company. They have no other qualification and no other affiliation with appraiser associations. Is that LEGALLY allowed? They wanted to know if their company is in the wrong... Personally i thought they needed some sort of training and ASA or some sort of membership and adherence??

 

[denverappraiser]

Legally they don’t even need a GG, or any other gemological training for that matter. Not even one of those 1 day seminars that’s all they need to call themselves a GIA alumni. Anyone who can spell appraiser (or not) can call themselves an appraiser, can produce documents titled ‘appraisal’ and can write whatever description or number they want. The secret is that customers are under no obligation to care what some bonehead thinks. If you don’t know who the appraiser or don’t have some basis for why you should believe their opinions, DON’T. If a jeweler shows you an ‘appraisal’ as evidence that something is a good deal and you have reason to believe that it’s a work of fiction, don’t just avoid the appraiser, avoid the jeweler. By the way, some of the appraisal organizations are very easy to affiliate with. A string of initials after their name aren''t necessarily important either. Check into what they stand for.

Appraise the appraiser.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[Modified Brilliant]

sadly

anyone (qualified or not) can write a jewelry appraisal or call themselves a "gemological
laboratory."

Jeff Averbook, G.G. Graduate Gemologist/Appraiser

www.metrojewelryappraisers.com

 

[WorkingHardforSmallRewards]

wouldn''t that make the situation ripe for some sortof insurance fraud? You could just write up "appraisals" for your friends and it seems to me there would be someway to take advantage of that....so do some insurance companies not require certain qualifications before accepting the value of an appraisal?

 

[Modified Brilliant]

You would be amazed at the scribbled vague appraisals from retailers that I see that are sent to the insurance companies.

Jewelry insurance companies such as Jewelers Mutual will in fact, call the appraiser for better or more information if
something is amiss or if the appraisal was written on a napkin. They are looking to protect the consumer''s interest as well
as their own.

Jeff Averbook, G.G. Graduate Gemologist/Appraiser

www.metrojewelryappraisers.com

 

[strmrdr]

The typical appraisal in my area is:
1 letterhead page saying something like this:
One ladies size six 18k gold ring with a 1.2ct I vs1 round diamond.
Value $16500
signed:
Joe Doe

 

[WorkingHardforSmallRewards]

Date: 9/26/2007 5:17:42 PM
Author: Modified Brilliant
You would be amazed at the scribbled vague appraisals from retailers that I see that are sent to the insurance companies.


Jewelry insurance companies such as Jewelers Mutual will in fact, call the appraiser for better or more information if

something is amiss or if the appraisal was written on a napkin. They are looking to protect the consumer's interest as well

as their own.


Jeff Averbook, G.G. Graduate Gemologist/Appraiser


www.metrojewelryappraisers.com

HUM, I smell job opportunity lurking in this thread....

 

[denverappraiser]

Date: 9/26/2007 5:10:51 PM
Author: WorkingHardforSmallRewards
wouldn''t that make the situation ripe for some sortof insurance fraud? You could just write up ''appraisals'' for your friends and it seems to me there would be someway to take advantage of that....so do some insurance companies not require certain qualifications before accepting the value of an appraisal?

Insurance companies have whole departments to deal with fraud on the part of their customers. It’s a huge problem that drives up the rates for all of us and can lead to confrontational sessions between otherwise reasonable insurers and innocent clients.

Incompetent appraisers is one of the big reasons that most of the insurance companies prefer replacement type policies over paying cash at whatever value the ‘appraiser’ sees fit to list.

The ‘appraiser’ has a significant liability exposure here. If you consult with an appraiser who represents themselves as an expert and they provide you advice that you rely on to your detriment and that turns out to be materially inaccurate or outright fictitious, you or your insurance company may be able to take legal action against them. A boilerplate disclaimer that says ‘we are not responsible for anything we say or do’ does not protect them. There may also be liability by a seller if they provide a customer with an ‘appraisal’ as part of their sales presentation that contains misleading or inaccurate information and that results in harm to them or their insurer.

It’s worth pointing out that insurance fraud is a felony in every state and the insurers can and do press for criminal charges in cases where they have sufficient evidence and this would include collusion between a client and an appraiser to mislead the company.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Jewelry Appraisals in Denver

 

[strmrdr]

Date: 9/26/2007 5:39:21 PM
Author: denverappraiser


Insurance companies have whole departments to deal with fraud on the part of their customers. It’s a huge problem that drives up the rates for all of us and can lead to confrontational sessions between otherwise reasonable insurers and innocent clients.

Incompetent appraisers is one of the big reasons that most of the insurance companies prefer replacement type policies over paying cash at whatever value the ‘appraiser’ sees fit to list.

The ‘appraiser’ has a significant liability exposure here. If you consult with an appraiser who represents themselves as an expert and they provide you advice that you rely on to your detriment and that turns out to be materially inaccurate or outright fictitious, you or your insurance company may be able to take legal action against them. A boilerplate disclaimer that says ‘we are not responsible for anything we say or do’ does not protect them. There may also be liability by a seller if they provide a customer with an ‘appraisal’ as part of their sales presentation that contains misleading or inaccurate information and that results in harm to them or their insurer.

It’s worth pointing out that insurance fraud is a felony in every state and the insurers can and do press for criminal charges in cases where they have sufficient evidence and this would include collusion between a client and an appraiser to mislead the company.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Jewelry Appraisals in Denver

Which is one of the reasons high appraisals are so common, they arent likely too get sued by the client as long as they have enough insurance to cover a replacment and the insurance company is happy too keep the higher premiums on a replacement policy.

 

[Modified Brilliant]

Some appraisals that cross my path for updates were so overly inflated 10 years ago
that the values reflected then are actually more in tune with the values today.

Daily Real World Problem

Consumer:
"But I thought jewelry and diamond values increased over the years?"
Appraiser:
"Okay...let me spend some time explaining how the insurance process works...."

Consumer:
"WoW, I''m really confused now! You mean I was overpaying on insurance premiums for the last ten years?
....AND they don''t actually give you the cash in most cases?"
Appraiser:
"That would be correct, sir."

Jeff Averbook, G.G. Graduate Gemologist/Appraiser

www.metrojewelryappraisers.com

 

[strmrdr]

Date: 9/26/2007 8:02:01 PM
Author: Modified Brilliant
Some appraisals that cross my path for updates were so overly inflated 10 years ago
that the values reflected then are actually more in tune with the values today.

Daily Real World Problem

Consumer:
''But I thought jewelry and diamond values increased over the years?''
Appraiser:
''Okay...let me spend some time explaining how the insurance process works....''

Consumer:
''WoW, I''m really confused now! You mean I was overpaying on insurance premiums for the last ten years?
....AND they don''t actually give you the cash in most cases?''
Appraiser:
''That would be correct, sir.''

Jeff Averbook, G.G. Graduate Gemologist/Appraiser

www.metrojewelryappraisers.com

on the flip side if had been damaged the person had enough insurance where a more reasonable appraisal 10 years later they would have been badly under insured.
I hate too say it but the majority of the people I know are doing exactly that, basing there insurance on 10+ year old appraisals.