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Dearborn Cuts Distributors

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Dearborn National has ended a distribution and marketing agreement with Rayant Insurance Agency Inc.

Dearborn National, a unit of Health Care Service Corp., Chicago, says the decision to end the agreement was mutual.

Health Care Service Corp. is the parent of Blue Cross and Blue Shield of Illinois and other Blues plans.

Rayant is a life and dental distribution unit of Horizon Healthcare Services Inc., Newark, N.J., the holder of the Blue Cross and Blue Shield licenses for New Jersey.

Rayant has been the exclusive distributor of Dearborn National life, disability and dental products in New Jersey; Dearborn National now intends to work directly with New Jersey brokers, the company says.

Earlier this month, Dearborn National ended an exclusive distribution agreement for Maine, New Hampshire and Vermont with Red Tree Holdings Inc.

Red Tree, a unit of Northeast Delta Dental, Concord, N.H., acquired a Dearborn National distribution subsidiary, Combined Services L.L.C., Concord, from Dearborn National in January 2010.

Dearborn National agreed to keep using Combined Services as an exclusive distributor for group and voluntary life and disability products in northern New England even after it sold Combined Services.

Although Combined Services no longer has an exclusive distribution agreement with Dearborn National, it will continue to be one of Dearborn National’s distributors in the Northeast, Dearborn National says.

“The new arrangement enables development of new distribution and administrative directions for our team,” Brian Francis, president of Combined Services, says in a statement.

- Allison Bell

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