How Notaries protect the public

A notary public is an appointed position by the Secretary of State’s department in a given state. As with many public officials, the State specifies that the person obtain a surety or notary bond prior to receiving their commission. This bond “makes sure” that when the notary violates the public trust through negligence of their responsibilities, finances are set aside to reimburse the State for its loss.

The principal duty of a notary public is to validate that the individual parties to an agreement are who they claim to be. The State may experience a loss if the notary neglects to properly validate 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 Maryland 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 surety bond is a guarantee of payment to the obligee (the State) when losses occur for a penalty amount of the bond. Notary bonds are usually provided by a surety company (typically an insurance carrier). The bond generally runs concurrently with the term of a notary’s commission.

You’re probably familiar with a property insurance policy. If you have a property insurance 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 homeowners insurance policy however, a notary bond is simply a promise that the funds will be available if 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 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 Public E & O and can also be obtained for a nominal fee from insurance carriers.

Related posts:

1. Life Insurance Policy Dispute – How to React Life insurance companies will typically try to deny a claim...
2. Van Insurance – UK Van Insurance Explained Are you confused about the different types of van insurance? ...
3. What is auto insurance? What is an auto insurance review? The most valuable possessions...
4. Methods of buying the perfect life insurance for you At present, each and every person require a life insurance...
5. The Extras You Can Add Onto Your Vehicle Insurance Policy There are several ranges of cover you can take out...

Related posts brought to you by Yet Another Related Posts Plugin.