(1) After the occurrence of the insured event, the insurer is entitled to release himself or herself from all further liabilities by paying the sum insured. The insurer remains liable to reimburse those expenses which arose in loss avoidance or minimisation, or to replace or repair the insured object before the policyholder received his or her declaration of intent to release himself or herself by paying the sum insured.
(2) The right of the insurer to release himself or herself by paying the sum insured lapses if the policyholder does not receive the declaration within one week after the time when the insurer learned of the occurrence of the insured event and of its immediate consequences.