Bonds and Liability Flashcards
6 cards from real IN NOTARY practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Bonds and Liability flashcards as text
What is the minimum surety bond amount required for an Indiana notary public?
Answer: $25,000
Indiana requires notary public applicants to obtain a surety bond of at least $25,000 as a condition of their commission.
Who is protected by an Indiana notary's surety bond?
Answer: The general public who may be harmed by the notary's misconduct
The surety bond protects members of the public who suffer financial loss due to the notary's official misconduct or negligence.
If a claimant successfully files against an Indiana notary's surety bond, what happens next?
Answer: The surety company pays the claim and may seek reimbursement from the notary
The surety company pays valid claims against the bond, then has the right to seek reimbursement (indemnification) from the notary.
What is the difference between a notary's surety bond and errors and omissions (E&O) insurance?
Answer: The bond protects the public; E&O insurance protects the notary
The surety bond protects the public from notary misconduct, while E&O insurance protects the notary from personal financial loss due to honest mistakes.
When must an Indiana notary obtain their surety bond?
Answer: Before applying for or receiving their notary commission
The surety bond must be in place before the notary commission is issued. It is a prerequisite for obtaining the commission.
An Indiana notary's bond expires before their commission term ends. What is the consequence?
Answer: The notary's commission is automatically suspended and they must stop performing notarial acts
If the surety bond lapses, the notary is no longer authorized to perform notarial acts. The bond must remain active throughout the entire commission term.