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The dealer will immediately reveal a blackjack if the face up card has a value of 10 without any of the players taking actions if they have it, and to do so they must know they have it, if the face up card is the ace, players can pay for insurance against the dealer having blackjack. The dealer in blackjack has no 'options' about what they do ...
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If he does not have Blackjack, you lose your insurance. Even Money. If you have Blackjack and the dealer has an ace showing, the dealer will offer you even money for your Blackjack (instead of 3 to 2). If you do not take it and the dealer also has Blackjack, you will have a push just like normal.
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