What document does a broker use to collect and record important client information?

A broker uses a fact finder to collect and record important client information because this document is specifically designed to gather comprehensive details about a client's needs, preferences, financial situation, and any other relevant information needed for effective insurance planning and product recommendation. The fact finder serves as a foundation for understanding the client’s circumstances and aids in ensuring the broker can provide tailored solutions that meet the client’s specific requirements.

The other options serve different purposes within the insurance process. For example, a claim settlement form is used to initiate a claim for insurance benefits, a policy application is the document that clients fill out to apply for an insurance policy, and an insurance binder is a temporary agreement that provides coverage until the formal insurance policy is issued. Each of these documents is important in its context, but none are designed to comprehensively gather client information like the fact finder does.