RI Notary Fees and Liability 2

Question 1

Under Rhode Island law, how are notary fees for standard notarial acts regulated?

Accepted Answer

State law does not set a maximum fee, so any fee charged should be reasonable and agreed upon in advance

Answer

The Secretary of State sets a mandatory $2 fee for every act

Answer

Notaries must always perform acts free of charge

Answer

Fees are set annually by each city or town council

Question 2

A Rhode Island notary wants to charge for driving to a signer's home. What is the best practice?

Accepted Answer

Disclose the travel charge separately and obtain the signer's agreement before traveling

Answer

Add the travel cost to the notarial fee without mentioning it

Answer

Bill the signer only after the notarization is complete

Answer

Travel charges are illegal for notaries in every state

Question 3

If a Rhode Island notary negligently fails to properly identify a signer and someone suffers a financial loss, the notary may be:

Accepted Answer

Personally liable in a civil lawsuit for damages caused by the negligence

Answer

Immune from all liability because notaries are state officers

Answer

Liable only if the loss exceeds $10,000

Answer

Responsible only for refunding the notary fee

Question 4

Which of the following does Rhode Island require a notary public to purchase before receiving a commission?

Accepted Answer

Neither a surety bond nor errors and omissions insurance

Answer

A $10,000 surety bond

Answer

A $25,000 errors and omissions policy

Answer

Both a bond and an insurance policy

Question 5

What is the primary purpose of errors and omissions (E&O) insurance for a notary?

Accepted Answer

To protect the notary from personal financial loss caused by unintentional mistakes

Answer

To guarantee payment of the notary's fees by clients

Answer

To reimburse the state for administrative costs

Answer

To replace the need for proper identification of signers

Question 6

A Rhode Island notary who knowingly notarizes a signature without the signer being present may face:

Accepted Answer

Commission revocation and potential civil and criminal penalties

Answer

Only a verbal warning from the Secretary of State

Answer

No consequences if the document was never used

Answer

A mandatory fee refund and nothing more

Question 7

When may a Rhode Island notary's employer face liability for the notary's improper notarization?

Accepted Answer

When the notarization was performed within the scope of the notary's employment

Answer

Never, because liability always stays with the notary alone

Answer

Only if the employer holds the notary's commission certificate

Answer

Only when the employer is a bank or law firm