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 most public officials, the State specifies that the individual obtain a surety or notary bond before receiving their commission. This bond “makes sure” that when the official violates the public trust through negligence of their duties, finances are available to reimburse the State for its loss.
The primary responsibility of a notary public is to ensure that the individual parties to an agreement are who they claim to be. The State may suffer a loss if the notary fails to properly ensure the identity of the parties.
As a public official, the notary public causes harm to the public trust by failing in their duty to confirm identity. If a Nebraska 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 surety bond is a promise to pay to the obligee (the State) if losses occur for a penalty amount of the bond. Notary bonds are usually provided by a surety company (typically an insurance carrier). The bond usually runs concurrently with the period of a notary’s commission.
You’re probably familiar with a home insurance policy. If you have a rental property in Indiana loss, the insurance carrier pays the loss and writes off the loss. You aren’t required to reimburse the carrier for the claim. Unlike a property insurance policy however, a notary bond is simply a guarantee 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 carrier 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 obtained for a nominal fee from insurance carriers.
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