AK Notary AK Notary Liability and Errors 2 — Questions and Answers
Question 1: Which of the following best describes errors and omissions (E&O) insurance for Alaska notaries?
- It is required by Alaska law
- It is optional coverage that protects the notary from claims of professional mistakes (Correct answer)
- It replaces the surety bond requirement
- It covers only intentional acts
Correct answer: It is optional coverage that protects the notary from claims of professional mistakes
E&O insurance is optional in Alaska but provides additional protection against claims arising from innocent mistakes in performing notarial acts.
Question 2: What distinguishes a notary's liability for negligence versus misconduct?
- Negligence is always more serious than misconduct
- Negligence is accidental error; misconduct is intentional wrongdoing (Correct answer)
- There is no legal distinction between them
- Misconduct applies only to attorneys
Correct answer: Negligence is accidental error; misconduct is intentional wrongdoing
Negligence refers to unintentional errors, while misconduct involves deliberate violations of notary law or ethics, each carrying different consequences.
Question 3: An Alaska notary notarizes a document for a person they did not properly identify, and fraud results. Who may be liable?
- Only the signer
- The notary, for failing to meet identification requirements (Correct answer)
- The surety company only
- No one, as the notary acted in good faith
Correct answer: The notary, for failing to meet identification requirements
The notary bears responsibility for properly identifying signers; failure to do so that results in fraud creates notary liability.
Question 4: What is the statute of limitations consideration when a party seeks to hold an Alaska notary liable for a faulty notarization?
- Claims must be filed within 24 hours
- State statutes of limitations for negligence or fraud apply (Correct answer)
- No time limit exists for notary claims
- Claims must be filed within 6 months
Correct answer: State statutes of limitations for negligence or fraud apply
Claims against a notary for negligence or fraud are subject to Alaska's general statutes of limitations applicable to those causes of action.
Question 5: If a notary's surety bond is exhausted by a claim, who is responsible for any remaining damages?
- The state of Alaska
- The notary personally (Correct answer)
- The bonding company above the bond limit
- No one — the bond fully limits liability
Correct answer: The notary personally
Once the bond amount is exhausted, the notary is personally responsible for any damages exceeding the bond coverage.
Question 6: Which action could expose an Alaska notary to liability even if done with good intentions?
- Refusing to notarize a suspicious document
- Providing legal advice to help a signer understand a document (Correct answer)
- Charging the maximum statutory fee
- Recording all acts in the notary journal
Correct answer: Providing legal advice to help a signer understand a document
Providing legal advice, even with good intentions, constitutes unauthorized practice of law and can expose the notary to liability.
AK Notary AK Notary Liability and Errors 2
Which of the following best describes errors and omissions (E&O) insurance for Alaska notaries?