Posted by Les_CO on 11/16/06 5:09pm
Msg #160643

Lender requires $500,000.00 E&O insurance?

Anyone else come across Provident Funding requiring that the Notary have half million bucks worth of E&O insurance???? I carry 100K. I don't even know if I can buy 1/2 million (and why would I want to?)

Reply by ananotary on 11/16/06 5:10pm
Msg #160644

Re: Lender requires $500,000.00 E&O insurance?....Yes

I was shocked also. The signing ended up staying with the title company to have them covered under that bond.

Reply by Ndwa on 11/16/06 7:01pm
Msg #160671

Re: Lender requires $500,000.00 E&O insurance?....Yes

It is the lender's requirement and is up to TC whether or not to accept that liability with an SA. I've done a few Provident, but never bothered to ask TC. This post caught my curiosity as I just accepted one for tomorrow. I inquired with the EO and she did indeed said they got me under their E&O umbrella b/c you know what...

Reply by ananotary on 11/16/06 7:12pm
Msg #160679

Re: Lender requires $500,000.00 E&O insurance?....Yes

I also have done other Provident loans. On those the loan officer that I work with had to sign a form that took responsibility.

Reply by Susan Fischer on 11/16/06 5:29pm
Msg #160646

Re: I'm confused

I thought that E & O covered the notary, and a bond covered the public. Since Oregon doesn't require bonds, they are not offered here. Perhaps the huge E & O limit is to insure that if the notary is judgement proof, that in the event a notary is held liable, there are deep pockets from whhich to recover a big loss?

Reply by Les_CO on 11/16/06 5:50pm
Msg #160652

Re: I'm confused

I could be wrong, I don't know insurance, but as I understand it a "bond" covers just about everything. Errors and Omissions insurance covers just about nothing. If you do something because you're stupid, or careless (like forgetting to stamp the doc) you "may" be covered. If you knowingly do something (like back date) you're not covered. A bond covers even criminal activity (maybe?) Why any lender would require a notary to have 500K O&E is beyond me (unless they sell it) The one's at risk for big loss is the title Co. They are insuring against loss. And BTW it's a great business. The ONLY insurance that insures against things that have already happened. Most insurance insures against things that are going to happen. So if the title people can walk and chew gum at the same time, the title Co should NEVER have to pay a claim.

Reply by Susan Fischer on 11/16/06 6:25pm
Msg #160657

Ahhh - thank you. n/m

Reply by NCLisa on 11/16/06 6:55pm
Msg #160668

Title companies and attorney's care Liability E&O insurance. When Provident asks for E&O, that is what they want. As a RE Paralegal, I had to constantly fax over the dec page of our E&O liability insurance to lenders all the time. It is quite different than notary E&O.

Reply by Linda_H/FL on 11/16/06 7:07pm
Msg #160676

Yes but this has been mentioned before - apparently Provident expects the notaries to carry that amount too..

Reply by NCLisa on 11/17/06 8:03am
Msg #160785

Yes, but they aren't asking for "notary E&O", they are asking for liability insurance with E&O coverage in the amount of $500,000. The same insurance that the TC's, settlement companies and attorney's have. Even if you had Notary E&O Insurance for $500,000 it is not the type of coverage they are looking for.