WASHINGTON—California has moved to streamline some agent-licensing provisions, but the new law does not address a priority of agents and brokers: uniform licensing laws through reciprocity.

A.B. 1416, signed Oct. 2 by Gov. Jerry Brown, ends the need for state regulators to review the articles of incorporation for insurers that are incorporated in other states or nations. It passed the legislature with strong bipartisan backing Sept. 6.

It also makes several changes in law relating to insurance producer licenses, including clarifying the bond requirement for an agent or broker who holds both property and casualty licenses.

According to officials at the California Insurance Department, legislation enacted last year that created the two license types was unclear on the bonding requirements and, as written, the law could be interpreted that a separate bond was required for each license. AB 1416 clarifies that only one bond is required, the officials say.

The law goes into effect in January.

However, the new law does not reflect a change in policy for reciprocal licensing of individual agents and brokers in California, as proposed in the National Association of Registered Agents and Brokers Reform Act.

That bill was reintroduced in March by Rep. Randy Neugebauer, R-Texas, and Rep. David Scott, D-Ga.

Both life and P&C insurance agents support such legislation, which would create standardization of agent licensing. The issue has been around for more than 10 years.

Such a provision was included in the Gramm-Leach-Bliley Act of 1999, but the effort failed because large states such as California declined to support it.

Industry officials declined to comment for the record but stated privately that this new bill does not represent a change in position by California officials.