What must an insurer do to repair, rebuild, or replace a damaged auto?

The correct option emphasizes that an insurer must advise the insured in writing within 7 days of receiving the proof of loss. This timeframe is significant because it establishes a clear communication protocol between the insurer and the insured, ensuring that the insured is promptly informed about the next steps concerning their claim.

When a policyholder submits a proof of loss, it is essential for the insurer to acknowledge receipt and inform the insured about the outcome or the necessary subsequent actions within a reasonable period. This practice not only demonstrates compliance with regulatory standards and contractual obligations but also helps maintain transparency and trust in the insurance process. By providing written communication, the insurer creates a documented trail, which can be beneficial for both parties in case of any disputes or misunderstandings later on.

Timely communication is crucial in the insurance industry, especially after a loss, as it helps insured individuals understand their rights and the status of their claims, which in turn can lead to faster resolutions and repairs.