A notary public is an official appointed position by the Secretary of State’s office in a given state. As with many public officials, the State specifies that the person obtain a surety bond before receiving the commission. This bond “makes sure” that if the official violates the public trust through negligence of their responsibilities, finances are available to indemnify the State for its loss.
The main duty of a notary is to confirm that the individual parties to an agreement are who they claim to be. The State may suffer a loss if the notary fails to properly ensure 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 an Idaho 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 notary bond is a promise to pay 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 usually runs concurrently with the term of a notary’s commission.
You may be familiar with a home insurance policy. If a person has a rental property in Indiana claim, the insurance carrier pays the claim and writes off the loss. You aren’t required to reimburse the carrier for the loss. Unlike a home insurance policy however, a notary bond is simply a promise that the finances will be available if 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 carrier 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.
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