posted by hot news on Dec 19
A notary is an official appointed position by the Secretary of State’s office in a given state. Like most public officials, the State requires that the person get a surety or notary bond prior to getting their appointment. This bond “makes sure” that when the official violates the public trust through neglect of their duties, funds are set aside to indemnify the State for its loss.
The principal responsibility 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 forgets to properly ensure the identity of the parties.
As a public official, the notary public harms the public trust by failing in their responsibility to confirm identity. If a Missouri notary public doesn’t confirm identity and a loss occurs, an injured party can file a claim against that State for their 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 generally provided by a surety company (typically an insurance carrier). The bond generally runs concurrently with the term of a notary’s commission.
You may be familiar with a home insurance policy. When you have a rental property in Indiana loss, the insurance company 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 promise that the finances will be available should losses occur. The surety (insurance company) makes a payment to 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 person, 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 Errors and Omissions and may also be obtained for a nominal fee from insurance companies.