NV Notary - Nevada Notary Bonds and Insurance Requirements Questions and Answers Flashcards

If a Nevada notary's surety bond is depleted by a claim, what must the notary do?

Answer: Obtain a new or replacement bond to maintain the commission

A depleted bond must be replaced to keep the notary commission valid and active.

Which entity issues the surety bond that Nevada notaries are required to obtain?

Answer: A licensed surety or insurance company

Surety bonds are issued by licensed bonding or insurance companies, not government agencies.

What is the main difference between a surety bond and errors and omissions insurance for a Nevada notary?

Answer: A surety bond protects the public; E&O protects the notary

A surety bond compensates harmed third parties, while E&O insurance covers the notary's own defense costs and damages for negligent acts.

A Nevada notary is sued for a legitimate error causing $4,000 in damages. With a $5,000 surety bond and no E&O insurance, who ultimately pays if the claim is paid?

Answer: The notary must reimburse the bonding company

A surety bond is not insurance for the notary; the bonding company can seek reimbursement from the notary after paying a valid claim.

How is the premium cost of a Nevada notary surety bond typically determined?

Answer: It varies by the bond amount and the notary's credit risk

Surety bond premiums are set by bonding companies based on the bond amount and the applicant's creditworthiness.

Can a Nevada notary perform notarial acts while their commission application is pending but before the bond is filed?

Answer: No, the bond must be filed and the commission issued first

A Nevada notary may only perform notarial acts after receiving the commission and having the required bond in place.