Letter of Marque and Reprisal = ability to take enemy vessels as prizes during war. Traditionally issued to all naval vessels in time of war. Must specify who the enemy is.
It is the duty of all military vessels to recapture/liberate vessels captured by pirates. If the recapture occurs 24 hours after the capture, the salvage goes to the liberating vessel’s crew. Unless someone in congress changed the rules.
Of course, I could be wrong.
OK, so planning this better:
The problem with the random helping of vessels in distress is that you will probably have to constantly fight them for the salvage.
So really, the plan works best if you have pre-arranged agreements with various maritime insurance companies, so that you can be more confident that you will be paid.
Not correct. LoM are for private vessels, not naval vessels. They are basically bounty hunter licenses. There does not need to be a state of war for the issuance.
"A Letter of Marquee and Reprisal is an official warrant or commission from a national government authorizing the designated agent to search, seize, or destroy specified assets or personnel belonging to a party which has committed some offense under the laws of nations against the assets or citizens of the issuing nation, and has usually been used to authorize private parties to raid and capture merchant shipping of an enemy nation."