I have 1 email address policy in place that does not apply to contacts. If however I add a contact and the "Automatically update e-mail addresses based on email address policy" is checked they receive an internal email address along with the smtp address that I create for them. It would appear that this check box overrides the email address policy, as described below. Is this conclusion correct? When a recipient has "Automatically update e-mail addresses based on email address policy" enabled, all primary e-mail addresses (default reply addresses) of e-mail address types will always be set from the e-mail address policy. This means that if you edit the primary address to be a different e-mail address, it will always revert back to the one specified in the e-mail address policy.