XM Satellite Radio filed a $400 million insurance claim in the fi...

a 10-K report filed with the SEC. At present, the output power of the satellites’ solar array and broadcast signal strength were above “minimum acceptable levels, and are expected to remain that way until at least through 2005,” XM said, repeating the wording of earlier SEC filings. XM has launch and in-orbit insurance policies for coverage against total or partial loss of either satellite ($200 million per satellite, less applicable salvage) if such loss occurs within 5 years after launch, the 10-K said. The satellites had initial useful lives of 17.5 years, but life expectancy has been downgraded to 6.75 years, sufficient at current estimates to keep them operating at minimum levels through first quarter 2008, the 10-K said. A spare ground satellite has been modified to fix the solar array problem, but the company lacks the capital to launch it or replace its 2 existing orbiting satellites, the filing said. The company said it believes it ultimately will receive insurance payments adequate to launch the spare and start work on a new satellite.