FTC to study using credit scores to set insurance premiums

The FTC is conducting a study "on the effect of credit-based insurance scores on the availability and affordability of homeowners insurance". As you may know, most insurance companies now use your credit score as part of (1) the decision to insure you and (2) if they do insure you, the calculation of how much your premiums will be. Read more here - http://www.ftc.gov/opa/2009/04/facta.shtm.

I've never understood how missing a payment or not paying a medical collection (that you might not even know about) can predict whether you are going to have a wreck or a house fire or flood. But that's exactly what the insurance companies claim, that your payment history is an indication of whether you will have an insurance claim. Maybe this study will reveal this to be the farce that it is.