I haven't worked with Security settings for a while. It would take me a while to setup a test, but I don't have a remote site.
I remember having to add lines to an Exception List:
Java icon in Control Panel
Web Settings tab
Exception Site List
add a line like the following to the list:
file:///D:/JavaDevelopment/Testing/WriteFile/
A sample .policy file entry:
grant codeBase "http://127.0.0.1:8080/WriteFile/" {
permission java.io.FilePermission "<<ALL FILES>>", "write";
};
grant codeBase "file:/D:/JavaDevelopment/Testing/WriteFile/-" {
permission java.io.FilePermission "C:\\Temp\\writetest.txtXXXX", "read, write";
permission java.io.FilePermission "D:\\Testing\\writetest.txt", "read, write";
};