Hi @johackim 
welcome to Meta 
Perhaps make sure you have the plugin enabled in admin-settings policy enabled
Although, if you can use the create policy button on the composer toolbar, then it must be enabled 
I just made a new policy on one of my instances and it seems to be working as expected. I even copied and pasted your code above and successfully created a policy post. What happens when you rebuild html on that policy post? (click admin-wrench below post, rebuild html).