What does a notary do?
A notary public is an appointed position by the Secretary of State’s office in a given state. Just like many public officials, the State specifies that the individual obtain a notary bond prior to receiving the appointment. This bond “makes sure” that when the official violates the public trust through neglect of their responsibilities, funds are available to indemnify the State for its loss.
The primary responsibility of notaries public is to confirm that the individual parties to an agreement are who they claim to be. The State may experience a loss if the notary fails to properly validate the identity of the parties.
As a public official, the notary violates the public trust by failing in their responsibility to confirm identity. If a Kansas 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 surety bond is a promise to pay to the obligee (the State) when losses occur for a penalty amount of the bond. Surety 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 home insurance policy. If you have a home insurance 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 home insurance policy however, a notary bond is simply a guarantee 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 loss paid by the company 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 E & O and may also be obtained for a nominal fee from insurance companies.
This entry was posted on Tuesday, December 29th, 2009 at 4:34 am and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.