Broken exhaust flapper found free floating in bell housing.

It has been a while, but on my OMC it was a clapper that went in the elbows to prevent water from coming into the exhaust manifold. The more I look at the picture, that is what it is. It is coated with rubber and where the pin is, the clapper closes when the engine shuts off, then opens when the exhaust is blowing.
 
You are correct. The piece is the exhaust flap that stops water from backflowing into the engine when you come off plane or back off a trailer. I wouldn't run in the water without them installed. I also found pieces of mine when I did an extensive service last year. After some great recommendations from other CSR members, I upgraded to the new style rubber units. They use a duckbill design and last much longer than the old style. They use the stock mounting hole from the previous metal flaps. Just click them in. Easy upgrade.
Here is a link for an ebay seller that has them for sale now http://www.ebay.com/itm/Y-Pipe-Exha..._Parts_Accessories_Gear&vxp=mtr#ht_2216wt_931
 
http://www.boats.net/parts/detail/merc/M-99370A 2.html

I am not sure which engine you have but the above link has links to a bunch of diagrams of the location of this flapper valve on a host of different engines. I think most of the y-pipes have the shutters located at the top of the pipe. The engine does not have to be removed to replace these style shutters. You will only have to remove the exhaust elbow from the manifold. However I think there are some that require removal of the engine to replace (not positive). Mine are replaced by removing the exhaust elbow only.

John
 
slide down exhaust elbow rubber boots over the y pipe and rotate it out of the way. crc 656 lubricant sprayed under the boot helps get them off. They are just at the top of the y pipe, and use 2 rubber nubs to hold them in place the y pipe has notches to fit these "so called nubs".
 
Oh and dont forget to write down your serial number so you can get the right part from a real Mercruiser Dealer for like 15 dollars more.
 

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