The first place winner kid comes and congratulates both Lily and Law.  His mom gives some flowers and a hug to Lily.  Law gets a tiny box, given by one of the elders.  He opens it.

INSERT  

A SILVER necklace.


Hi all...is the above a correct format using INSERT?

Depends on what you next line is. But, more importantly, is the "INSERT" really necessary? You could easily write:

Quoted Text The first place winner kid comes and congratulates both Lily and Law.  His mom gives some flowers and a hug to Lily.  Law gets a tiny box, given by one of the elders.  He opens it. A SILVER NECKLACE. He studies it. Winces.                  LAW What, am I girl or something? What the fuck am I supposed to do with a necklace?

What Sniper says is correct. INSERT is usually followed by a BACK TO SCENE. I have used it in an OWC entry and I think in general it disrupts the flow a script. Having the object in a seperate line of action works just as well. If there is a particular detail that you need to show, like the time on a watch etc, then you could use:

INSERT WATCHFACE

It reads 20:07

BACK TO SCENE

lmao@ sniper's advise on Law's line.  Man..you are genious..how could you possibly know what my character was about to say?  
i will leave out the INSERT, and be a simple man.
and thanks Eoin, too.  Now, I get it guys..  e.g

Tom hannds the GPS to Sue to take a look at.  Sue studies it.

INSERT: GPS SCREEN

BACK TO SCENE

did i do it right?  i will try to avoid using it as much as i can in the future.  I understand that it can make the directors mad.