Posted by Art_PA on 7/9/13 8:07pm
Msg #476146

Claims Against a Notary

Any claim or possible claim must be reported to your E&O insurance carrier immediately. Do not post about it, and don't waste time & money consulting an attorney who knows less than you do about notary matters.

Your E&O should provide defense costs, and your carrier will appoint an attorney who knows how to defend a professional, and this may be enough to head off, and/or to defend any legal action against you.

Don't waste time - do it immediately.

Reply by Belinda/CA on 7/9/13 8:34pm
Msg #476148

This is only the case if you have an error in your cert.

That is the only thing E&O covers - unless you have Professional Loan Signing Agent coverage or some other kind of professional coverage. Notifying your basic E&O of anything other than errors in your certificate does no good. They can't/won't help you except maybe tell you an attorney's name.

If you are suspected of fraudulent activities, such as a post listed earlier, then E&O does not cover that.

Reply by Marian_in_CA on 7/9/13 8:37pm
Msg #476151

Not necessarily

This is not necessarily true. E&O will only handle certain type of claim regarding notarial errors or omissions. It does NOT handle all claims against a notary, which are, quite likely, far more prevalent than what E&O covers. This is why notaries who rely solely on E&O insurance to cover them are, IMO, opening themselves up to some issues.

Think of it like having auto insurance... but only carrying the bare minimum liability coverage required by law. It won't cover much.

For those with bonds, don't think that will help you either. Bonds are meant to protect the public, not you. If your carrier pays out against your bond, you have to pay it back.

Reply by Belinda/CA on 7/9/13 9:13pm
Msg #476156

So, what other errors and omissions would be covered

if not in your certificate? The certificate is all we do 'notary-wise.'

We mess up on a RTC, by having them sign the wrong line, we are not covered with E&O.
If we notarize a will and it is void because of it, we are not covered with E&O.
If we have the borrowers sign incorrectly and they loose their rate lock, we are not covered by E&O.

Can you give me a list of examples of what E&O would cover other than an error or omission in our certificate? I am very curious about this.

Reply by Linda_H/FL on 7/9/13 9:19pm
Msg #476158

Re: So, what other errors and omissions would be covered

Making any error with regard to any duty you're authorized to do - for example, in Florida, certifying a copy of a document without making the copy or having supervised the making of the copy; incorrect safe deposit box inventory; failure to record the marriage certificate after performing a wedding ceremony; screwing up the numbers on a VIN verification...etc etc..

It covers notarial errors.

Reply by VT_Syrup on 7/10/13 3:59am
Msg #476171

Re: So, what other errors and omissions would be covered

Some errors are evident just by looking at the face of the certificate. For example, failing to put a seal on the certificate if the state requires it. In most states, failing to strike out Florida and write in the correct state, and failing to add the county, in a pre-written certificate from from a certain Florida bank. But there are other errors that you can't detect by looking at the certificate.

I don't have any experience (thank heavens) about what E & O will or will not cover. But there are notarial errors that are not evident just by looking at the certificate. For example, some states might allow a notarial certificate that reads like this:

State of Confusion

County of Oz

Before me, Bill Notary, Confusion Notary Public, on July 10, 2013, John Doe acknowledged the foregoing instrument.

/s/ Bill Notary

There are other potential errors that would not be evident just by looking at the face of the certificate.

Let's say John Doe dies and his relatives sue the notary, saying Mr. Doe was obviously mentally incompetent in a way that a lay person should have been able to recognize. If the allegation was true, that might be a notarial error in the State of Confusion, so E & O might cover it.

Let's say John Doe turns out to be an imposter. The person who is harmed by the fraud sues the notary, claiming the notary didn't properly identify the person who appeared. If Bill Notary didn't make a proper effort to identify the person who appeared, that would be a notarial error and might be covered by E & O.

Even CA's proposed law about reporting suspected elder financial abuse might be covered, since it is a notarial duty.

Reply by JanetK_CA on 7/10/13 4:13am
Msg #476172

Re: So, what other errors and omissions would be covered

Here's some examples I just saw today: using a certificate with the wrong verbiage; leaving the pre-printed name on a certificate of a person who did not personally appear and whose signature wasn't notarized; using a notary stamp on a document with no signature (other than the notary's).... and I may be forgetting something else. (Some of these may just apply to California or other states, but not all.)

Other possibilities might include putting the wrong date on a certificate, misspelling a name, not including a venue. Forgetting a stamp has already been mentioned. And I'd bet we haven't included everything.

Reply by Linda_H/FL on 7/10/13 8:22am
Msg #476179

Well, she did ask "outside of the certificate"..that's what

led to my particular response.

Reply by Lee/AR on 7/9/13 8:45pm
Msg #476153

E & O carrier doesn't have to defend against a claim. They can just pay it off and often do when it's cheaper than an attorney.

Reply by MW/VA on 7/9/13 9:00pm
Msg #476155

The sense of security notaries have with E&O is false. It

really only covers against unintentional errors. For instance, if I notarized a will & the state later declared the will invalid because of the notarization, the estate might sue.
I carry S&A E&O, and a business liability policy. It's the business liability policy that would provide coverage in an situation like was described recently.

Reply by JanetK_CA on 7/10/13 2:39am
Msg #476170

Re: The sense of security notaries have with E&O is false. It

Seems to me that the title co's are the ones with the wrong idea about E&O insurance, since many of them require a certain level of coverage for the notaries they use. Never did make a whole lot of sense to me. It also makes me wonder when they ask for Notary E&O Insurance insurance info in advance.

Although now that I mention it, I did the 2nd half of a split signing today and I don't think there was one notarization that didn't have an error of some sort! Fortunately there weren't too many to notarize. Made me cringe...

Reply by MW/VA on 7/10/13 10:09am
Msg #476187

IMO the E&O insurance is a concept that is confused with the

E&O that tc's have to carry. It's a very different ballgame on their side of things.

Reply by Susan Fischer on 7/9/13 9:45pm
Msg #476159

Excellent advice, Art. Forewarned is forearmed, regardless

of the [unpredictable] outcome.

As an example, some years ago, I get this call from a Portland atty. (I'm in Lincoln City.) You've been named in a complaint. This is a culling call. Plaintiffs name everyone imaginable. He asked a few questions - open-ended so I could just give him the run-down of my assignment procedures in general, and affirm with my Journal the subject entries in particular. No red flags, he thanked me for my time, and I never heard another word.

As a long-time believer in the doctrine of Document The File, the issue of Journal Keeping is a burning one. It's so easy and accomplishes so much.

Good, strong post, Art.

Reply by Stephanie Santiago on 7/10/13 12:27pm
Msg #476201

I Document everything in my journal; if I receive a suppoena

to appear in court, I can refer to my journal of detailed recordkeeping. Likewise, if there was a claim against me, I would be able to, from the detailed notes in my journal respond with confidence to the accuracy of my procedure.
Now, certificate errors are not detailed iin my journal, but I do all notarizations precisely the same.
As a Notary Signing Agent, my best practices are as follows:
1. Ask if they are aware of what they have signed.
2. Ask if they signed of their own free will.
3. If it is a jurat, I ask if they swear or affirm that everything in the document is true to the best of their knowledge.
4. I obtain a right thumbprint from each signer.

It is not up to me to make sure the document content has been drawn up correctly.

Reply by Susan Fischer on 7/10/13 9:44pm
Msg #476279

Well said. n/m

Reply by ReneeK_MI on 7/10/13 8:19am
Msg #476178

Good advice, particularly don't post about it.

I thought everyone watched enough Law & Order to know that? lol It doesn't matter if every word you post about the situation is true, it can all become twisted in the 'right' hands. I understand the impulse that comes with such a 'holy stuff' moment, but best to keep it private.