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 civil 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 the 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. – Blackstone. All violent policy defeats itself. – Hamilton.
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. [It. polizza.]
6. [Sp. poliza.] Policy, in commerce, the writing or instruction 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. – Park. Blackstone. 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. – Blackstone. The word policy is used also for the writing which insures against other events, as well as against loss of property.

1. Civil polity.
   
   
   [Obs.]
2. To regulate by laws] to reduce to order.
   
   
   [Obs.] "Policying of cities." Bacon.
3. A ticket or warrant for money in the public funds.
4. 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. 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.
6. The method by which any institution is administered; system of management; course.
7. 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.

8. 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.
9. 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.

10. Motive; object; inducement.
    
    
    [Obs.]

    What policy have you to bestow a benefit where it is counted an injury? Sir P. Sidney.

    Syn. -- See Polity.