AR Notary Notary Liability and Insurance 3 — Questions and Answers
Question 1: What is the required amount of the surety bond for an Arkansas notary public?
- $7,500 (Correct answer)
- $1,000
- $10,000
- $25,000
Correct answer: $7,500
Arkansas law requires notaries to file a $7,500 surety bond (or its equivalent) before receiving a commission.
Question 2: An Arkansas notary's bond must remain in effect for how long?
- The full ten-year term of the commission (Correct answer)
- One year, renewed annually
- Four years
- Until the notary's first bond claim
Correct answer: The full ten-year term of the commission
The bond must cover the entire ten-year commission term in Arkansas.
Question 3: A notary knowingly notarizes a forged deed in Arkansas. Which combination of consequences could the notary face?
- Civil liability, criminal prosecution, and revocation of the commission (Correct answer)
- Only a warning letter from the Secretary of State
- Only forfeiture of the bond with no personal consequences
- Only suspension of notary fees for one year
Correct answer: Civil liability, criminal prosecution, and revocation of the commission
Willful misconduct can simultaneously trigger civil damages, criminal charges, and loss of the notary commission.
Question 4: Which statement best describes the difference between a surety bond and E&O insurance?
- A bond pays the injured public and is repaid by the notary; E&O pays claims on the notary's behalf without reimbursement for covered errors (Correct answer)
- They are identical products sold by different companies
- A bond covers intentional acts while E&O covers nothing
- E&O is required by Arkansas law while a bond is optional
Correct answer: A bond pays the injured public and is repaid by the notary; E&O pays claims on the notary's behalf without reimbursement for covered errors
The bond is a public-protection instrument the notary must repay, while E&O insurance actually absorbs the notary's covered losses.
Question 5: A signer sues an Arkansas notary for negligence after a defective acknowledgment. Which record would best help the notary defend against the claim?
- A journal entry documenting the notarization details and identification used (Correct answer)
- A photocopy of the notary's commission certificate
- The receipt for the notary's seal purchase
- A letter of good standing from the surety
Correct answer: A journal entry documenting the notarization details and identification used
A journal entry provides contemporaneous evidence that the notary followed proper procedures.
Question 6: Under Arkansas law, when can an injured party recover against a notary's surety bond?
- When they suffer financial loss caused by the notary's official misconduct or neglect of duty (Correct answer)
- Whenever they are unhappy with a notarized transaction
- Only if the notary is first convicted of a felony
- Only if the loss exceeds $7,500
Correct answer: When they suffer financial loss caused by the notary's official misconduct or neglect of duty
Bond recovery requires showing actual damages caused by the notary's breach of official duty.
Question 7: Which party typically issues an Arkansas notary's surety bond?
- A licensed surety or insurance company authorized to do business in Arkansas (Correct answer)
- The Arkansas Secretary of State directly
- The county clerk
- The notary's employer as self-insurer
Correct answer: A licensed surety or insurance company authorized to do business in Arkansas
Bonds are purchased from licensed surety companies authorized to operate in the state.
AR Notary Notary Liability and Insurance 3
What is the required amount of the surety bond for an Arkansas notary public?