AR Notary AR-Notary Notary Bond Requirements and Notary Liability 2

Question 1

A newly commissioned Arkansas notary asks who the surety bond is actually designed to protect. What is the correct answer?

Accepted Answer

The public who may be harmed by the notary's misconduct

Answer

The Arkansas notary bond exists to compensate members of the public harmed by a notary's official misconduct, not to protect the notary.

Question 2

What is the required amount of the surety bond for an Arkansas notary public?

Accepted Answer

$7,500

Answer

Arkansas law requires notaries to obtain a $7,500 surety bond (or a qualifying alternative) as a condition of commissioning.

Question 3

Arkansas law permits a notary to satisfy the bonding requirement with an alternative to a traditional surety bond. What is that alternative?

Accepted Answer

An errors and omissions insurance policy in the required amount

Answer

Arkansas allows a qualifying errors and omissions insurance policy in the statutory amount to be filed in lieu of a surety bond.

Question 4

If a surety company pays a claim of $3,000 caused by a notary's negligent notarization, what may the surety do next?

Accepted Answer

Seek reimbursement of the $3,000 from the notary personally

Answer

A surety that pays a claim on a notary bond has the right to recover the amount paid from the notary through indemnification.

Question 5

A person suffers $20,000 in damages from a notary's misconduct, but the bond only covers part of it. Who is responsible for the amount exceeding the bond?

Accepted Answer

The notary, who remains personally liable for all damages

Answer

The bond amount is not a liability cap, so the notary remains personally liable for all damages proximately caused by official misconduct.

(AR Notary) Arkansas Notary Exam Practice Test

(AR Notary) Arkansas Notary Exam Practice Test

AR Notary AR-Notary Notary Bond Requirements and Notary Liability 2