Connecticut Life Producer Practice exam

What does the term "fully insured" mean in relation to Social Security?

1. Someone who has completed a specified number of work hours

2. Someone who has earned 40 quarters of coverage

3. Someone who has a life insurance policy

4. Someone who has filed for disability benefits

The correct answer is: Someone who has earned 40 quarters of coverage

The term "fully insured" in relation to Social Security refers specifically to an individual who has earned 40 quarters of coverage. This status indicates that the individual has worked and paid Social Security taxes for a sufficient amount of time, typically over a ten-year period. Each quarter of coverage represents a set amount of earnings, and accumulating 40 quarters is a requirement to qualify for various Social Security benefits, including retirement and disability benefits. Other choices do not accurately capture the meaning of "fully insured." Completing a specified number of work hours does not define the coverage status under Social Security. Having a life insurance policy relates to private insurance rather than the terms of Social Security. Filing for disability benefits does not imply a specific level of coverage under Social Security, as eligibility for such benefits is dependent on meeting the guidelines set forth for being fully insured or currently insured, not merely on having submitted an application.