THURSDAY THINK TANK - Notary Signing Agent Code of Professional Responsibility Guiding Principle #3 - Impartiality
IMPARTIALITY
Websters Dictionary defines 'impartiality' as: not partial or biased, treating or affecting all equally.
Notaries are public officials responsible for verifying the authenticity of documents and administering oaths and affirmations. Impartiality is a fundamental principle that notaries must adhere to for several important reasons:
Preserve Trust: Impartiality ensures that notaries maintain the trust of the public. People rely on notaries to be unbiased and neutral, which is essential for the integrity of the transactions.
Prevent Conflict of Interest: If notaries were not impartial, they might have personal or financial interests that could influence their decisions or actions, potentially leading to conflicts of interest that undermine the purpose of notarization.
Ensure Legal Compliance: Notaries play a role in upholding the law. Impartiality helps ensure that documents are notarized in accordance with legal requirements and that notaries do not engage in any unlawful practices.
Maintain Professionalism: Impartiality is a hallmark of professionalism in the notary field. Notaries are expected to carry out their duties with integrity and neutrality to maintain the reputation of their profession.
Avoid Legal Consequences: Violating the principle of impartiality can have legal consequences, including disciplinary actions, fines, or even the revocation of a notary's commission.
Support Dispute Resolution: When disputes arise over notarized documents, the impartiality of the notary becomes crucial in providing a reliable record of the transaction. An impartial notary's testimony can help resolve such disputes.
Promote Accountability: Impartial notaries are more likely to maintain accurate records and documentation of their notarial acts. This transparency and accountability benefit both the notary and the individuals involved in the transaction.
Uphold Ethical Standards: Impartiality is a key ethical principle for notaries. It ensures that they adhere to a code of conduct that prioritizes integrity, honesty, and fairness in their interactions with clients and the public.
Impartiality is a cornerstone of the notarial profession, ensuring that notaries fulfill their role as neutral, trustworthy witnesses to important legal and financial transactions while upholding the law and ethical standards.
Please see below the Notary Signing Agent Code of Conduct, Guiding Principle #3, Impartiality:
DID YOU KNOW THAT THERE IS MORE THAN ONE TYPE OF ERRORS & OMISSIONS INSURANCE?
Yes, there is more than one type of E&O Insurance. If you are a Notary Loan Signing Agent you may not be fully covered if you only have standard E&O Insurance.
While all signing agents are notaries, not all notaries serve as signing agents. A notary's responsibilities are limited to conducting notarial acts, whereas signing agents undergo training to facilitate the presentation of loan documents to clients and assist lenders in the closing process. It's crucial to note that Notary Errors and Omissions (E&O) Insurance does not cover all losses resulting from errors during signings. For more specialized coverage, signing agents require Signing Agent Errors and Omissions (E&O) Insurance.
Notary E&O Insurance safeguards notaries in case a mistake made during notarization leads to financial losses for the client. However, it exclusively pertains to notarial acts and doesn't extend protection to signing agents when they engage in tasks like document review with clients, calculating rescission dates, or returning paperwork to the loan provider.
Signing Agent E&O Insurance is designed to bridge the gaps left by Notary E&O Insurance. Independent signing agents assume personal liability for losses stemming from errors during signings, and this insurance type covers:
Innocent errors or omissions related to notarial acts by signing agents.
Incorrect dating of the right of rescission.
Missed initial or non-notarized signatures.
Unauthorized alterations to documents.
Neglect by signing agents in completing documents promptly.
Delayed return of time-sensitive documents.
To be eligible for Signing Agent E&O Insurance offered through CNA Surety, you must have completed signing agent training, obtained certification, passed a criminal background check, maintained membership in a professional association, and maintained a journal.
It's essential to carry E&O insurance for both professions because even if you are innocent, you might still face substantial legal expenses when defending yourself against lawsuits.
