How to become a notary public
A notary is an official appointed position by the Secretary of State’s department in a given state. Just like many public officials, the State requires that the person obtain a surety bond before getting the commission. This bond “makes sure” that if the official violates the public trust through negligence of their duties, funds are set aside to indemnify the State for its loss.
The primary responsibility of a notary is to validate that the individual parties to a contract are who they claim to be. The State may suffer a loss if the notary public forgets to properly confirm the identity of the parties.
As a public official, the notary public causes harm to the public trust by failing in their duty 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 promise to pay to the obligee (the State) if losses occur for a penalty amount of the bond. Surety bonds are often provided by a surety company (typically an insurance carrier). The bond often runs concurrently with the period of a notary’s commission.
You’re probably familiar with a home insurance policy. When a person has a home insurance in Indiana claim, the insurance carrier pays the loss and writes off the loss. You aren’t required to reimburse the company for the loss. Unlike a property insurance policy however, a notary bond is simply a promise that the finances 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 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 E & O and may also be obtained for a nominal fee from insurance carriers.
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