Notary Liability and Insurance Flashcards

What is the required amount of the surety bond for an Arkansas notary public?

Answer: $7,500

Arkansas law requires notaries to file a $7,500 surety bond (or its equivalent) before receiving a commission.

An Arkansas notary's bond must remain in effect for how long?

Answer: The full ten-year term of the commission

The bond must cover the entire ten-year commission term in Arkansas.

A notary knowingly notarizes a forged deed in Arkansas. Which combination of consequences could the notary face?

Answer: Civil liability, criminal prosecution, and revocation of the commission

Willful misconduct can simultaneously trigger civil damages, criminal charges, and loss of the notary commission.

Which statement best describes the difference between a surety bond and E&O insurance?

Answer: A bond pays the injured public and is repaid by the notary; E&O pays claims on the notary's behalf without reimbursement for covered errors

The bond is a public-protection instrument the notary must repay, while E&O insurance actually absorbs the notary's covered losses.

A signer sues an Arkansas notary for negligence after a defective acknowledgment. Which record would best help the notary defend against the claim?

Answer: A journal entry documenting the notarization details and identification used

A journal entry provides contemporaneous evidence that the notary followed proper procedures.

Under Arkansas law, when can an injured party recover against a notary's surety bond?

Answer: When they suffer financial loss caused by the notary's official misconduct or neglect of duty

Bond recovery requires showing actual damages caused by the notary's breach of official duty.

Which party typically issues an Arkansas notary's surety bond?

Answer: A licensed surety or insurance company authorized to do business in Arkansas

Bonds are purchased from licensed surety companies authorized to operate in the state.