How a notary bond protects the public
A notary is an appointed position by the Secretary of State’s department in a given state. Just like many public officials, the State specifies that the individual get a surety bond before receiving their appointment. This bond “makes sure” that if the notary violates the public trust through neglect of their duties, finances are available to reimburse the State for its loss.
The primary duty of notaries public is to confirm that the individual parties to a contract are who they claim to be. The State may experience a loss if the notary public fails to properly confirm the identity of the parties.
As a public official, the notary public violates the public trust by failing in their duty to confirm identity. If a California notary public doesn’t confirm identity and a loss occurs, an injured party can file a claim against that State for its loss, because the State was negligent through its appointed representative.
A notary bond is a promise to pay to the obligee (the State) should losses occur for a penalty amount of the bond. Notary Public bonds are usually provided by a surety company (typically an insurance carrier). The bond often runs concurrently with the term of the notary’s commission.
You’re probably familiar with a home insurance policy. When a person has an Indiana home insurance claim, the insurance company pays the loss and writes off the loss. You aren’t required to reimburse the company for the loss. Unlike a property insurance policy however, a notary bond is simply a promise that the funds will be available should losses occur. The surety (insurance company) pays the State up to the penalty amount of the bond. However, this claim paid by the company is not simply written off. The surety will most likely seek reimbursement from the bonded party, the notary themself.
A notary bond protects the public. Who protects the notary? Insurance coverage is available to provide this protection – it’s called Notary Public E & O and can also be purchased for a nominal fee from insurance companies.
This entry was posted on Sunday, July 26th, 2009 at 5:44 am and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.