The Collaborative International Dictionary of English v.0.48:

Policy \Pol"i*cy\, v. t. [imp. & p. p. Policied; p. pr. & vb.
   n. Policying.]
   To regulate by laws; to reduce to order. [Obs.] "Policying of
   cities." --Bacon.
   [1913 Webster]

The Collaborative International Dictionary of English v.0.48:

Policy \Pol"i*cy\, n. [F. police; cf. Pr. polissia, Sp.
   p['o]lizia, It. p['o]lizza; of uncertain origin; cf. L.
   pollex thumb (as being used in pressing the seal), in LL.
   also, seal; or cf. LL. politicum, poleticum, polecticum, L.
   polyptychum, account book, register, fr. Gr. ? having many
   folds or leaves; ? many + ? fold, leaf, from ? to fold; or
   cf. LL. apodixa a receipt.]
   1. A ticket or warrant for money in the public funds.
      [1913 Webster]

   2. 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.
      [1913 Webster]

   3. A method of gambling by betting as to what numbers will be
      drawn in a lottery; as, to play policy.
      [1913 Webster]

   Interest policy, a policy that shows by its form that the
      assured has a real, substantial interest in the matter
      insured.

   Open policy, one in which the value of the goods or
      property insured is not mentioned.

   Policy book, a book to contain a record of insurance
      policies.

   Policy holder, one to whom an insurance policy has been
      granted.

   Policy shop, a gambling place where one may bet on the
      numbers which will be drawn in lotteries.

   Valued policy, one in which the value of the goods,
      property, or interest insured is specified.

   Wager policy, a policy that shows on the face of it that
      the contract it embodies is a pretended insurance, founded
      on an ideal risk, where the insured has no interest in
      anything insured.
      [1913 Webster]

The Collaborative International Dictionary of English v.0.48:

Policy \Pol"i*cy\, n.; pl. Policies. [L. politia, Gr. ?; cf.
   F. police, Of. police. See Police, n.]
   1. Civil polity. [Obs.]
      [1913 Webster]

   2. 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.
      [1913 Webster]

   3. The method by which any institution is administered;
      system of management; course.
      [1913 Webster]

   4. 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.
      [1913 Webster]

   5. Prudence or wisdom in the management of public and private
      affairs; wisdom; sagacity; wit.
      [1913 Webster]

            The very policy of a hostess, finding his purse so
            far above his clothes, did detect him. --Fuller.
      [1913 Webster]

   6. Motive; object; inducement. [Obs.]
      [1913 Webster]

            What policy have you to bestow a benefit where it is
            counted an injury?                    --Sir P.
                                                  Sidney.
      [1913 Webster]

   Syn: See Polity.
        [1913 Webster]

WordNet (r) 3.0 (2006):

policy
    n 1: a plan of action adopted by an individual or social group;
         "it was a policy of retribution"; "a politician keeps
         changing his policies"
    2: a line of argument rationalizing the course of action of a
       government; "they debated the policy or impolicy of the
       proposed legislation"
    3: written contract or certificate of insurance; "you should
       have read the small print on your policy" [syn: policy,
       insurance policy, insurance]

Moby Thesaurus II by Grady Ward, 1.0:

164 Moby Thesaurus words for "policy":
   accident insurance, action, actuary, annuity, approach,
   arrangement, assurance, autarky, aviation insurance, bail bond,
   behavior, bimetallism, bingo, bond, business life insurance,
   card games, casualty insurance, certificate of insurance,
   chuck and toss, chuck farthing, chuck-a-luck, circumspection,
   circumspectness, conduct, consideration, contract by deed,
   contract of record, contract quasi, cool judgment, course,
   court bond, covenant of indemnity, crack-loo, crap game,
   crap shooting, craps, credit insurance, credit life insurance,
   creed, custom, debenture, debenture bond, deductible, deed,
   deed of trust, deed poll, design, discreetness, discretion,
   discrimination, economic self-sufficiency, endowment insurance,
   family maintenance policy, fan-tan, fidelity bond,
   fidelity insurance, flood insurance, formal contract,
   fraternal insurance, free enterprise, free trade, game plan,
   good judgment, government insurance, governmentalism, group policy,
   guiding principles, hazard, health insurance, horse racing,
   implied contract, indent, indenture, industrial life insurance,
   insurance, insurance agent, insurance broker, insurance company,
   insurance man, insurance policy, interinsurance, judgment,
   judiciousness, keno, laissez-faire, laissez-faireism,
   liability insurance, license bond, limited payment insurance, line,
   localism, lotto, major medical insurance, malpractice insurance,
   managed currency, management, marine insurance, method,
   mortgage deed, mutual company, noninterference, nonintervention,
   nullification, ocean marine insurance, parol contract, party line,
   party principle, permit bond, pinball, pitch and toss,
   plan of action, planned economy, platform, polity, position,
   position paper, practice, price supports, principles, procedure,
   program, promissory note, protection, protectionism, protocol,
   providence, prudence, prudentialism, public policy, pump-priming,
   recognizance, reflection, reflectiveness, regulation,
   robbery insurance, rouge et noir, roulette, rule, scheme,
   sectionalism, shell game, social security, sound judgment,
   soundness of judgment, special contract, specialty,
   specialty contract, stock company, strategy, sweepstake,
   sweepstakes, system, tactics, term insurance, the numbers,
   the numbers game, theft insurance, thoughtfulness, title deed,
   trente-et-quarante, underwriter, way, ways and means, weighing



Bouvier's Law Dictionary, Revised 6th Ed (1856):

POLICY, PUBLIC. By public policy is meant that which the law encourages for
the promotion of the public good.
     2. That which is against public policy is generally unlawful. For
example, to restrain an individual from marrying, or from engaging in
business, when the restraint is general, in the first case, to all persons,
and, in the second, to all trades, business, or occupations. But if the
restraint be only partial, as that Titius shall not marry Moevia, or that
Caius shall not engage in a particular trade in a particular town or, place,
the restraint is not against public policy,, and therefore valid. 1 Story,
Eq. Jur. Sec. 274. See Newl. Contr. 472.