Reply by Bobbi in CT on 1/22/05 6:30pm
Msg #17741
Alabama E&O
Not a recommendation of where to purchase.
I know the NNA sells E&O to its members through Western Surety. You can get an idea of cost from the NNA web site or try Western Surety direct.
What the signing companies do not get is that the E&O will ONLY COVER an error within the notarization block; i.e., your function as a public official performing a notarization. Mess up the notarization block and E&O will cover your legal costs and fees to defend against a claim and, if necessary with "insurance company decision parameters" pay out on a claim. It does not cover any part of the signing agent responsibilities - for example, lender identification requirements, recission form errors, document completion errors, and the loan package not being delivered on time (lender losses loan sale and pays a penalty for late delivery to secondary market).
You would think these companies would lobby the Secretaries of States of every state that does NOT require a bond to pass legislation to require a minimum amount bond for Notaries Public. The bond, at least, protects the public rather than the Notary. --- Oh, maybe the companies are looking out for our best interests, not the borrower and the lender. CT does NOT require a bond or E&O for its Notaries. I carry a minimal amount of E&O just to keep the companies that ask for it happy.
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