What does a notary do?
Posted: under General Interest.
A notary is an appointed position by the Secretary of State’s office in a given state. Like many public officials, the State requires that the individual obtain a surety bond before getting their appointment. This bond “makes sure” that when the official violates the public trust through negligence of their responsibilities, finances are available to reimburse the State for its loss.
The principal duty 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 forgets to properly ensure the identity of the parties.
As a public official, the notary public harms the public trust by failing in their duty to confirm identity. If a Wisconsin 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 guarantee of payment to the obligee (the State) when losses occur for a penalty amount of the bond. Surety bonds are usually provided by a surety company (typically an insurance carrier). The bond generally runs concurrently with the term of the notary’s commission.
You’re probably familiar with a property insurance policy. If you have an Indiana home insurance loss, the insurance carrier pays the loss 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 promise that the finances will be available when 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 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 companies.
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Apr 24 2009