Which legislation allows for a statutory assignment of the benefit of a policy?

The correct answer is indeed the Law of Property Act 1925. This legislation is significant because it establishes the framework for the statutory assignment of the benefits of various types of property rights, including insurance policies. Under this Act, insured parties can assign their rights under an insurance policy to another party without needing to go through the original insurer, thereby facilitating transfers of benefits and providing legal clarity.

This statutory assignment is particularly important in insurance because it allows for the seamless transfer of insurance benefits that may be crucial in financial transactions, such as in the sale of property where insurance coverage is essential. By providing the legal foundation for such assignments, the Law of Property Act helps ensure that rights are effectively transferred and recognized by all parties involved.

In contrast, other options do not specifically address the assignment of policy benefits in the way that the Law of Property Act does. The Policies of Assurance Act 1867 primarily dealt with issues concerning the assurance and regulation of insurance policies but did not specifically focus on the assignment of benefits. The Marine Insurance Act 1906 relates to maritime insurance contracts and their principles but does not cover statutory assignment. The Contracts Act 1977 also does not provide the statutory framework for assigning benefits under insurance policies specifically, focusing instead on general contract principles.