\Pol"i*cy\, n.; pl. {Policies}. [L. politia, Gr. ?; cf.
F. police, Of. police. See {Police}, n.]
1. Civil polity. [Obs.]
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.
3. The method by which any institution is administered;
   system of management; course.
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.
5. Prudence or wisdom in the management of public and private
   affairs; wisdom; sagacity; wit.
         The very policy of a hostess, finding his purse so
         far above his clothes, did detect him. --Fuller.
6. Motive; object; inducement. [Obs.]
         What policy have you to bestow a benefit where it is
         counted an injury?                    --Sir P.
                                               Sidney.
Syn: See {Polity}.

\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.

\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.
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}.
3. A method of gambling by betting as to what numbers will be
   drawn in a lottery; as, to play policy.
{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.