Since when has ANY insurance claim been easy?! My medical insurance makes me do all stupid things to cover sometimes. Such is the nature of the beast called insurance.
That said, just because you NEVER HEARD of anyone paying out, doesn't mean it doesn't happen. State Farm supposedly gives the client the money back. no one has lost their stone so far, but I think if it's in a contract, then you better believe my lawyer will make them pay...
We use Jeweler's Mututal. We have a replacement policy that states they will replace it for us through our original jeweler, and this was OK with us, and our jeweler was an authorized dealer of our branded stone. I trust the company we got our stone from, so if they replaced it, that would be OK.
But, you may want to consdier Chubb and State Farm, or any other insurance company you have who can possibly provide an add on service to your existing insurance for car, home, whatever... you may get a better rate through them for being a customer already! Good luck!