retrieve data from related tables.

Ok, your error lies in the fact that you’re not using the magic names for your fields, which can be solved two ways:
#1 Use the magic names -> change ParentPolicyId to policy_id
#2 Use the code that lets you specify your own:

in Standard:
belongs_to :policy, :foreign_key => ‘ParentPolicyId’
in Policy:
has_many :standards, :foreign_key => ‘ParentPolicyId’

One more point of interest to you:
In your rhtml, you’re doing policy.standard.StandardName… since a Policy has_many Standards, you can’t do that.
You would need something like the following:
<% Policy.standards.each do |standard| %>
<%= standard.StandardName
%>
<% end %>
That loops through all the standards, and displays the name of each one.

I’m sorry, I mis-capitalized and it screwed everything up.

That should be policy.standards.each do |standard| instead of Policy.standards.each do |standard|
One references the class, the other references the instance.

Hmm, not entirely sure what problem you’re seeing, but something I did notice that is incorrect (and probably again my fault):
belongs_to policy, :foreign_key => ‘ParentPolicyId’
should probably be
belongs_to :policy, :class_name => ‘Policies’, :foreign_key => ‘ParentPolicyId’

You may want to consider having your table named policies and your model named Policy… that would be the standard for Rails, and might make things work more easily.