1 [pol-uh-see]
noun, plural policies.
a definite course of action adopted for the sake of expediency, facility, etc.: We have a new company policy.
a course of action adopted and pursued by a government, ruler, political party, etc.: our nation's foreign policy.
action or procedure conforming to or considered with reference to prudence or expediency: It was good policy to consent.
sagacity; shrewdness: Showing great policy, he pitted his enemies against one another.
Rare. government; polity.

1350–1400; Middle English policie government, civil administration < Middle French < Latin polītīa polity

1. strategy, principle, rule. 4. acumen, astuteness, skill, art.

4. ingenuousness, naiveté.
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2 [pol-uh-see]
noun, plural policies.
a document embodying a contract of insurance.
a method of gambling in which bets are made on numbers to be drawn by lottery.
numbers pool ( def 2 ).

1555–65; < Middle French police (< Italian polizza < Medieval Latin apodīxa receipt ≪ Greek apódeixis a showing or setting forth; see apodictic, -sis) + -y3

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Based on the Random House Dictionary, © Random House, Inc. 2014.
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World English Dictionary
policy1 (ˈpɒlɪsɪ)
n , pl -cies
1.  a plan of action adopted or pursued by an individual, government, party, business, etc
2.  wisdom, prudence, shrewdness, or sagacity
3.  (Scot) (often plural) the improved grounds surrounding a country house
[C14: from Old French policie, from Latin polītīa administration, polity]

policy2 (ˈpɒlɪsɪ)
n , pl -cies
a document containing a contract of insurance
[C16: from Old French police certificate, from Old Italian polizza, from Latin apodixis proof, from Greek apodeixis demonstration, proof]

Collins English Dictionary - Complete & Unabridged 10th Edition
2009 © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins
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Word Origin & History

"way of management, government, administration," late 14c., from O.Fr. policie (14c.) "civil administration," from L. politia "the state," from Gk. politeia "state, administration, government, citizenship," from polites "citizen," from polis "city, state," from PIE *p(o)lH- "enclosed space, often on
high ground" (cf. Skt. pur, puram "city, citadel," Lith. pilis "fortress"). Meaning "plan of action, way of management" first recorded c.1406.

"written insurance agreement," 1565, from M.Fr. police "contract, bill of lading" (1371), from It. polizza "written evidence of a transaction," from M.L. apodissa "receipt for money," from Gk. apodexis "proof, declaration," from apo- "off" + deiknynia "to show," cognate with L. dicere "to tell" (see
Online Etymology Dictionary, © 2010 Douglas Harper
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Example sentences
If we had better policy we wouldn't need to deal with cable boxes at all.
She likes the new policy.
Reports and policy analyses addressing key issues in the debate on climate
One reason Rome flourished as long as it did was that public policy was
  determined by signs and portents.
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