Posted by TimMD on 6/21/05 6:22pm
Msg #46617

Need MD notaries help/ Bond

Sorry to be such a pain.. but I decided not to declare my property in the financial statement we need to submit with the bond applicaiton, so my assets do not reach $ 100 000. Got a call from cheasepeake insurance in Annapolis, they say that I must declare my property (I previously mentioned that I got one), otherwise I can not be insuranced. I asked if I could pay a higher premium.. they said it does not work that way. They also stated that my property wont be put at risk as I mistakenly believe, unless I STEAL FUNDS...I though no matter if it is somebody else fault's , we still may be liable, at least that is what I read on this forum.
Why is it that other notaries in MD can pay higher premiums when do not have $ 100 000 liquid assets... My guess is because they dont really have the assets..and in my case is that I do not want to declare one of them. Do I have misconceptions ? Should I believe the insurance company ?..I feel that I have not option but to believe, I tried other insurance companies, they need me to be working for a title company. I 'd really appreciate your comments. Thanks !

Reply by Traci/MD on 6/21/05 8:19pm
Msg #46651

I thought you where using your property instead of a the bond. This is correct. You are using your personal assets to qualify. Just like on a loan aplication.

Reply by Vicki/MD on 6/21/05 9:08pm
Msg #46673

It is my understanding that you could probably go out there and find another bond through another company for more than twice what Brad is offering you. Most insurance bonding companies don't specialize in handling our unique situation. I searched everywhere until I found Brad. I don't know what people without the assets do to qualify. Here's the thing. IF that bond should ever have to pay out on your behalf, you will be responsible for paying back the bond for the amount paid. How you manage to do that is your business. You can take out a loan against your property to pay it. You could use other funds if you have it. You could refuse to pay it back and have your home foreclosed on you or your other assets raided. Or, as a smart person, you could even obtain a notary and general business liability E&O Insurance policy to match or exceed the bond to cover yourself. Having a bond without matching E&O insurance is a receipe for financial disaster. Brad can get you an annual E&O policy of $250,000 for about $600 (yes, in addition to the cost of the bond). This is why MD notary signing agents command a much higher premium for their signings. (And if I ever catch you taking an edoc signing in Montgomery county for less than $125.00, I'm going to have to personally track you down and knock you upside the head! *just kidding* ; *sortof*)

Reply by TimMD on 6/22/05 10:01am
Msg #46778

You are a great help Vicky

With regards to the fee, you are absolutely right. I will stick to my guns ! Take care and thank you again.

Reply by Barry/FL on 6/22/05 2:18am
Msg #46714

Check with other insurance companies. Does this mean that if one does not own real estate one can not be a notary or NSA in MD?

Reply by Traci /MD on 6/22/05 6:24am
Msg #46726

Barry,

Maryland Law requires a Title producer license.
To get your 100k surety bond you must have assets to back up the bond. The less in assets the more risk to the insurance company the higher the premium.

A notary in MD can do HELCO closings only. They could loose their commission and prosecuted.

Reply by Vicki/MD on 6/22/05 10:01am
Msg #46777

I heard that some lenders even require notaries to be title licensed for HELOC closings. Depends on whether or not the lender is insuring the home's title for the second lien. I've seen title insurance premiums on HUD statements for some HELOCs/second mortgages. Good luck, Tim!

Reply by Traci/MD on 6/22/05 10:25am
Msg #46783

Yes you are correct. When title insurance is sold we must have a title insurance license.
Most line of credit do not require title insurance.

Maryland is a tough state, but a least we are not a lawyer only state!!!!

Reply by Barry/FL on 6/22/05 7:46pm
Msg #46953

Thank you for the information. I'm learning more and more everyday.