Hi,
Your query is not that much clear, you are talking about the installation of ploicy file. I am not clear in it.
Generally policyfile are created with policytool command.
Please see this URL in order to know where the policy file should be stored and how it can be used.
http://java.sun.com/docs/books/tutorial/security1.2/tour1/index.html
If possible, can you please elaborate your query.
Thanks
Bakrudeen