From BiblePortal Wikipedia

King James Dictionary [1]

POL'ICY, n. L. politia Gr. city.

1. Policy, in its primary signification, is the same as polity, comprehending the fundamental constitution or frame of government in a state or kingdom. But by usage, policy is now more generally used to denote what is included under legislation and administration, and may be defined, the art or manner of governing a nation or that system of measures which the sovereign of a country adopts and pursues, as best adapted to the interests of the nation. Thus we speak of domestic policy, or the system of internal regulations in a nation foreign policy, or the measures which respect foreign nations commercial policy, or the measures which respect commerce. 2. Art, prudence, wisdom or dexterity in the management of public affairs applied to persons governing. It has been the policy of France to preclude females from the throne. It has been the policy of Great Britain to encourage her navy, by keeping her carrying trade in her own hands. In this she manifests sound policy. Formerly, England permitted wool to be exported and manufactured in the Low Countries, which was very bad policy.

The policy of all laws has made some forms necessary in the wording of last wills and testaments.

All violent policy defeats itself.

3. In common usage, the art, prudence or wisdom of individuals in the management of their private or social concerns. 4. Stratagem cunning dexterity of management. 5. A ticket or warrant for money in the public funds. 6. Policy, in commerce, the writing or instrument by which a contract of indemnity is effected between the insurer and the insured or the instrument containing the terms or conditions on which a person or company undertakes to indemnify another person or company against losses of property exposed to peculiar hazards, as houses or goods exposed to fire, or ships and goods exposed to destruction on the high seas. This writing is subscribed by the insurer, who is called the underwriter. The terms policy of insurance, or assurance, are also used for the contract between the insured and the underwriter.

Policies are valued or open valued, when the property or goods insured are valued at prime cost open, when the goods are not valued, but if lost, their value must be proved.

Wagering policies, which insure sums of money, interest or no interest, are illegal.

All insurances, interest or no interest, or without further proof of interest than the policy itself, are null and void.

The word policy is used also for the writing which insures against other events, as well as against loss of property.

Webster's Dictionary [2]

(1): ( n.) A ticket or warrant for money in the public funds.

(2): ( n.) Prudence or wisdom in the management of public and private affairs; wisdom; sagacity; wit.

(3): ( n.) Civil polity.

(4): ( n.) The settled method by which the government and affairs of a nation are, or may be, administered; a system of public or official administration, as designed to promote the external or internal prosperity of a state.

(5): ( n.) The method by which any institution is administered; system of management; course.

(6): ( n.) Management or administration based on temporal or material interest, rather than on principles of equity or honor; hence, worldly wisdom; dexterity of management; cunning; stratagem.

(7): ( n.) Motive; object; inducement.

(8): ( n.) A method of gambling by betting as to what numbers will be drawn in a lottery; as, to play policy.

(9): ( n.) The writing or instrument in which a contract of insurance is embodied; an instrument in writing containing the terms and conditions on which one party engages to indemnify another against loss arising from certain hazards, perils, or risks to which his person or property may be exposed. See Insurance.

(10): ( v. t.) To regulate by laws; to reduce to order.

International Standard Bible Encyclopedia [3]

pol´i - si  : Literally "method of government," and so "ability to manage affairs." In a bad sense, "cunning," "craft," in   Daniel 8:25 ( שׂכל , sekhel , "understanding"); in a good sense in 1 Macc 8:4 (βουλή , boulḗ , "counsel"); also in the King James Version 2 Macc 13:18; 14:29, 31 (μέθοδος , méthodos , στρατήγημα , stratḗgēma , στρατηγέω , stratēgéō ), where the Revised Version has "stratagem." Policies occurs in Judith 11:8 the King James Version for πανούργημα , panoúrgēma , lit. "readiness for anything," here in a good sense; Revised Version "subtil devices."