Posted On: January 15, 2007, 4:12 pm CST

Posted By: Art N. Shuirer

Well, then, lets see if weve got this right.

If the painting were insured for the full $139 mil, then Wynn would have a claim (not necessarily a loss payment) for $139 mil less the residual value of the painting, which to him is worth nothing.

The painting goes to auction in a repaired, noted and excepted condition, where it fetches say $60 mil (many great works have had damage repairs by great restorers throughout the years and it doesnt necessarily mean the works are trashed). Wynn then gets to claim $79mil, still much more than he paid for the work.

Problem for Wynn will be this - just because someone made a VERBAL offer to buy, it doesnt mean he can claim $139 mil as a "market value prior to the date of loss". And it doesnt mean underwriters would have agreed to $139 mil for the piece, either - any valuation way out of whack with the rest of the Picasso market would still be subject to review and agreement by the carriers.

Chances are that Wynn et al didnt have the time to get London on board with a new set of numbers before he stuck in his thimb and pulled out a plum and said "What a great way to get rich"!