What does a notary do?
A notary is an official appointed position by the Secretary of State's department in a given state. As with many public officials, the State requires that the person get a surety or notary bond prior to receiving the commission. This bond "makes sure" that if the notary violates the public trust through negligence of their responsibilities, funds are set aside to reimburse the State for its loss.
The principal duty of notary publics 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 neglects to properly confirm the identity of the parties.
As a public official, the notary violates the public trust by failing in their duty to confirm identity. If a Washington DC notary public doesn't confirm identity and a loss occurs, an injured party can file a claim against that State for the loss, because the State was negligent through its appointed representative.
A notary bond is a promise to pay to the obligee (the State) when 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 period of a notary's commission.
You're probably familiar with a homeowners insurance policy. When you have a homeowners insurance in Indiana loss, the insurance carrier pays the loss and writes off the loss. You aren't required to reimburse the company for the claim. Unlike a property insurance policy however, a notary bond is simply a promise that the finances will be available when losses occur. The surety (insurance company) pays the State up to the penalty amount of the bond. However, this loss paid by the carrier 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 Errors and Omissions and can also be purchased for a nominal fee from insurance companies.
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Posted: November 11th, 2009 under Contributed.
Tags: Errors And Omissions, Homeowners Insurance, Injured Party, Insurance Carrier, Insurance Company, Insurance Coverage, Negligence, Notary Errors, Notary Public, Notary Publics, Obligee, Principal Duty, Property Insurance Policy, Public Bonds, Public Notary, Public Officials, Public Trust, Surety Bond, Surety Company, Surety Insurance