Wire Fraud Against Oklahoma Bank Sparks Fight Between Insurers

An AmTrust Financial Services Inc. insurance unit is on the hook for litigation alleging it breached its policies by refusing to cover an Oklahoma bank hit by a criminal wire transfer scheme, another insurer acting as AmTrust’s agent said.

In a complaint filed Oct. 24 in the US District Court for the Western District of Oklahoma, BancFirst Insurance Services Inc. is seeking a declaratory judgment that it has no obligation to indemnify AmTrust North America Inc. for any losses related to its denial of insurance coverage.

BancFirst had helped Firstar Financial Corp. obtain a financial institution bond and a separate ...