Is there a python command to dynamically turn a objects ‘Actor’ under object type static on and off using python in game?
Well with actuators you can “suspend dynamics”. Search that in the BGE code resources and I’d say you’ll find your command.
I do not think you can change the “actor” flag in BGE.
But you could replace the object with one that has it on/off. (I know it is a big overhead).
Sorry about the late reply, was on holiday.
I think dynamics are for physics and all that, I only want the model to not be detected by the mouse over sen then I do want it to be detected 
That is a very good idea monster! I spent hours on trying to find alternatives. Thanks!
As far as I know, the mouse over sensor (ray) does not care about any physics parameter (dynamic, actor, ghost, invisible…).
The face must have the collision disabled. It is not changable at runtime.
I think replace mesh or end/addObject could help.