What is an example of a policy status indicating inactivity?

A policy status indicating inactivity is best exemplified by the status "Withdrawn." When a policy is marked as withdrawn, it signifies that the policyholder or the insurer has chosen to terminate the policy before it becomes inactive due to non-payment or lapsation. This status implies that no coverage exists, and the policy is no longer in force, indicating a clear state of inactivity.

In contrast, the other statuses represent varying degrees of activity. For example, "Pending" indicates that a policy is not fully active yet, as it is still undergoing processing or awaiting approval, but it does not imply that it has been terminated or is inactive. The status "Active" clearly denotes that the policy is currently in force and providing coverage, while "New" indicates that the policy has recently been initiated but is still in process or not yet active. Hence, "Withdrawn" is the only status among these options that distinctly represents inactivity regarding the policy's operation.