Notary public responsibilities
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 get a notary bond prior to receiving the appointment. This bond “makes sure” that if the notary violates the public trust through negligence of their duties, finances are available to reimburse the State for its loss.
The primary responsibility of notaries public is to ensure that the individual parties to a contract are who they claim to be. The State may experience a loss if the notary public fails to properly validate the identity of the parties.
As a public official, the notary public causes harm to 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 its 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 usually provided by a surety company (typically an insurance carrier). The bond often runs concurrently with the period of a notary’s commission.
You may be familiar with a home insurance policy. When you have a property insurance in Indiana claim, the insurance carrier pays the loss and writes off the loss. You aren’t required to reimburse the carrier 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) makes a payment to the State up to the penalty amount of the bond. However, this claim paid by the surety 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 may also be purchased for a nominal fee from insurance companies.
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