On November 8, 1988, California voters approved Proposition 103, which called for 20 percent rate rollbacks and ongoing regulation of the insurance industry. Our review of the past year's activities by the department suggests that considerable time will pass before the regulatory process has been fully developed and implemented. The department has proceeded slowly; thus, there are many elements of the regulatory approach that have not yet been developed and numerous issues remain to be resolved. In effect, while much activity has occurred over the past year, we are in essentially the same place as when the initiative passed.