What does a notary do? August 28, 2011 at 4:24 pm
A notary public is an appointed position by the Secretary of State’s department in a given state. As with most public officials, the State requires that the person obtain a notary bond before receiving their commission. This bond “makes sure” that if the notary violates the public good through negligence of their duties, funds are available to reimburse the State for its loss.
The primary duty of notaries public is to validate that the individual parties to a contract are who they claim to be. The State might experience a loss if the notary fails to correctly validate the identity of both parties.
As a public official, the notary public violates the public good by failing in their duty to verify identity. If a Delaware notary public doesn’t confirm identity and a loss occurs, an injured party can file a claim with the State for the loss, since the State was negligent through its appointed notary.
A surety bond is a promise to pay to the obligee (the State) should losses occur for the penalty amount of the bond. Surety bonds are generally issued by a surety company (typically an insurance company). The bond generally runs concurrently with the period of a notary’s commission.
You’re probably familiar with a truck insurance policy. If a person has an Indiana car insurance claim, the insurance company pays the loss and writes off the loss. You aren’t required to pay back the carrier for the loss. Unlike a vehicle insurance policy however, a notary bond is simply a promise that the finances will be available when a loss occur. The surety (insurance carrier) 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 company 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 obtained for a nominal fee from insurance companies.