HI Notary Errors and Omissions and Notary Liability

Question 1

What type of insurance protects a Hawaii notary from financial liability for honest mistakes made during notarizations?

Accepted Answer

Errors and Omissions (E&O) insurance

Answer

Surety bond

Answer

General liability insurance

Answer

Professional malpractice insurance for attorneys

Question 2

Under what legal theory could a Hawaii notary be held liable for a signer who suffered financial loss due to the notary's failure to properly verify identity?

Accepted Answer

Negligence — failing to exercise the standard of care required of a notary

Answer

Strict liability — the notary is always liable if any harm occurs

Answer

Intentional tort — because all failures are assumed intentional

Answer

Notaries cannot be held liable for identity verification failures

Question 3

Does Hawaii law require notaries to carry Errors and Omissions insurance?

Accepted Answer

No — E&O insurance is optional and not required by Hawaii law

Answer

Yes — E&O insurance is mandatory for all Hawaii notaries

Answer

Only for notaries who charge a fee

Answer

Only for notaries who perform RON

Question 4

A Hawaii notary notarizes a power of attorney without properly verifying the signer's identity. The signer was actually an impostor. What is the notary's exposure?

Accepted Answer

Civil liability for damages caused by the failure to properly identify the signer

Answer

None — the notary is not responsible for fraud committed by others

Answer

Only criminal liability if the fraud was intentional

Answer

No liability since the principal's bank should have caught the fraud

Question 5

What is the difference between E&O insurance and a surety bond for Hawaii notaries?

Accepted Answer

E&O insurance protects the notary; a surety bond primarily protects harmed third parties and the state

Answer

They are identical products with different names

Answer

A surety bond is required; E&O insurance is not

Answer

A surety bond protects the notary from their own mistakes

Question 6

A Hawaii notary signs a notarial certificate for a document after being told it is needed quickly and without following standard procedures. The document is later used in fraud. Which best describes the notary's liability?

Accepted Answer

Significant — cutting corners on required procedures is negligence at minimum and may be willful misconduct

Answer

None — good intentions protect the notary from liability

Answer

Limited — only the person who committed the fraud is liable

Answer

None — the DCCA indemnifies notaries for procedural errors