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The instructor giving that particular CG Aux course was blowing smoke. They're not always the most knowledgeable of the local group members, usually the one's instructing like to hear themselves talk.
Bill...On the Ogeechee
1984 Outrage 18...Yamaha T50...that's right, 50hp
There is no federal law against a private citizen dropping an outboard of higher HP rating than the manufactures rating. Many shops won't rig the engine due to liability issues and you should tell your insurance company. If they insure the boat with full knowledge of the HP rating of the hull and the HP of the current engine, they will cover claims.
Several states have state laws against overpowering, FL being one of them. You should check with your state.
bktuna, if you want the extra HP then go for it. If you feel that you can handle the power. If you need an insurance recommendation then PM me and I can send you to my agent who I have my boat insured thru. They are very knowledgeable whaler people.