A notary is an official appointed position by the Secretary of State’s office in a given state. Like many public officials, the State specifies that the person obtain a surety or notary bond before getting the commission. This bond “makes sure” that if the notary violates the public trust through negligence of their duties, funds are set aside to reimburse the State for its loss.
The principal duty of notary publics 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 neglects to properly confirm 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 an Idaho 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 guarantee of payment to the obligee (the State) when losses occur for a penalty amount of the bond. Notary bonds are generally 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 homeowners insurance policy. If a person has a rental property in Indiana loss, the insurance company pays the claim and writes off the loss. You aren’t required to reimburse the company for the loss. Unlike a homeowners 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 surety 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 E & O and may also be purchased for a nominal fee from insurance companies.
Related posts:
- iPhone Insurance Underwriters Get Wise False Claim Scam iPhone Insurance providers fight back against theft claims from customers...
- Insurance Claims: Proceedures And Terminology Short term insurance is as much part of our...
- Terms Your Insurance Provider Might Use Car insurance is as much part of our daily lives...
- Finding The Best Diamond Ring Insurance Policy Serious time, effort, thought and money goes towards getting the...
- How to Get Started In Public Relations Careers Public relations employment opportunities are the most recent and hottest...