knowing that prop h.p. is lower ,,,wouldnt that be the number you report to your insurance co.,,,,is there a legal issue???would rates be lower,,,

If I am understanding your question correctly then the answer is you report the rated horsepower for your model, not what it is at the prop. So, if you have a Merc 700SCi and at the prop the HP rating is lower, that does not matter. You will still be rated at 700HP unless you can prove lower by way of dyno sheets. Depending upon the carrier, that small difference in HP doesn't even affect the rating.

Hope this helps.

Most insurance carriers use crankshaft HP rather than propshaft HP. The only carrier I know of that allows rating HP at the prop is Progressive. So, a Mercruiser 525 HP can be rated at 500 HP with Progressive, but this has virtually no effect on the rate. It does, however, allow certain boats to be placed in Progressive's program due to their top speed limit of 75 mph . Hope this helps.

Thanks!