Risk Management & Assessment Flashcards
7 cards from real Notary Public practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Risk Management & Assessment flashcards as text
A signer appears extremely nervous and repeatedly asks the notary to 'just sign it quickly without reading it.' What risk does this behavior signal?
Answer: The signer may be under duress or coercion
Urgency combined with discouraging careful review is a classic indicator that the signer may be acting under coercion or duress, which invalidates willingness.
Which of the following scenarios presents the GREATEST identity fraud risk to a notary?
Answer: A signer presents an expired driver's license and claims their new one is in the mail
An expired ID cannot be accepted as valid identification, and the explanation that the replacement is pending is a common tactic used by fraudsters.
A notary receives a request to notarize a document via email with a scanned signature and is asked to affix the notary seal remotely. What is the primary risk?
Answer: This constitutes improper remote notarization without complying with RON laws
Affixing a seal to a scanned signature without complying with Remote Online Notarization (RON) statutes is illegal and exposes the notary to criminal liability.
When a real estate attorney directs a notary to complete multiple loan signings per day without verifying signer identity each time, what should the notary do?
Answer: Refuse and insist on verifying identity for every signer on every document
A notary is personally and legally responsible for verifying each signer's identity regardless of instructions from any third party.
What is 'notary shopping' and why is it a red flag for fraud risk?
Answer: When a signer seeks multiple notaries until finding one who will notarize without proper verification
Notary shopping occurs when fraudulent actors seek a compliant or careless notary who will skip required verification steps.
A notary's journal entry for a notarization is later found to be missing. Which risk does this primarily create?
Answer: The notary cannot defend against claims that the notarization never occurred or was fraudulent
A complete journal entry is the notary's primary defense against allegations of improper notarization or fraud.
A notary is presented with a power of attorney document and asked to notarize the signature of the attorney-in-fact acting on behalf of a principal. What risk assessment step is most critical?
Answer: Verifying the identity of the attorney-in-fact who is physically present and signing
The notary must verify the identity of the person physically present and signing, which is the attorney-in-fact, not the absent principal.