Posted by Anonymous on 8/30/05 5:20pm
Msg #62684

E&O in Cal...

HI all!! I just got off the phone with a TC and they said there are some new laws, and they need their Notaries to have at least $100,000 of E&O. Anyone know why? I have it, but just just wondering why the new reuirements.

Reply by Barry Silver on 8/30/05 9:50pm
Msg #62755

While I am a firm believer in maximum amount of E&O, I would ask the TC for the SB or recent legislation as published by the state goverment that mandates a SA in CA to have this.

CA 8200-8300 makes no mention whatsoever of E & O, and it does cover the legislative changes for 2005.

8212 - states that a notary must have a $15,000.00 Bond on file with the state;

8213 (a) - states that the oath & Bond must be filed in person.

I do believe it is a good idea that it is carried by all notaries public; however, I do not see any CA legislation that makes it mandatory.

My guess is that the TC is attempting to limit its liability in the event of notary error. If the notary does not have E & O, then the SS or TC, whoever is the next one up the financial food chain, will be the responsible party for the notary's actions as long as that party carries the
E & O insurance and/or Business Liability insurance. The bottom line is that whoever is connected with the transaction and has the insurance is, in the legal system, the one who will pay the claim. TCs are required to carry such insurance.

Additionally, one of the reasons the Secretary of State in CA has assisted in implementing the required notary education for both new applicants and reappointments is because they want to cut down the number of lawsuits against notaries public.

Reply by TitleGalCA on 8/30/05 10:31pm
Msg #62765

I think you got two separate statements that are totally unrelated to each other: There are some new laws for 2005 (which is true); and They (the TC) are requiring their notaries to have E&O.

E&O is not required by the Secretary of State; and I can't imagine a reputable title company having that requirement of notaries unless they just recently suffered a claim in that regard...and there's no way for you to know that.

Reply by Anonymous on 8/31/05 1:11am
Msg #62792

The poster is correct. I have seen the new policy letter myself. The title company (if we are talking of the same one) is reputable. The policy has or will go into effect because of the amount of supposed fraud in the industry.

Reply by Barry Silver on 8/31/05 7:01am
Msg #62814

There is a difference between policy and legislation. I have found no legislation regarding E & O in CA stating that it is mandatory for notaries public, nor did I find any such announcement on the secretary of state's website, so needless to say I am quite curious whre you attained your information. If there is some that you are aware of, please, at the very least, post a link for the rest of us to see it so we can be informed. It would also be nice for you to identify yourself.