Utah Notary Practice Test

True or False: A notary's total liability can exceed the penalty of the bond.

1. True

2. False

3. Only in certain situations

4. Depends on the state's law

The correct answer is: False

The statement is false because a notary's liability is generally limited to the amount of their notary bond. The bond serves as a form of insurance intended to protect the public from any potential mistakes or misconduct performed by the notary. If a claim is filed against the notary for damages due to a notarial act, the maximum amount that can typically be recovered will not exceed the total penalty of the bond. This limitation is designed to provide a clear financial cap on the notary's responsibility and ensures that the notary is not held liable for damages beyond what is covered by the bond. In many states, the specific details about notary liability can vary, and certain situations may arise where a notary could face additional liability, such as criminal actions or other civil lawsuits that fall outside the scope of the bond. However, in general terms, the bond amount acts as the primary limit to the financial liability of a notary. Consequently, it would be misleading to state that a notary's total liability can exceed the bond penalty, making the assertion that it is false.