What type of agent is Paul if he is licensed in Virginia but resides in Maryland?

The correct choice identifies Paul as a nonresident agent because he holds a license to operate in Virginia but resides in Maryland. In the context of life insurance regulations, a resident agent is one who is licensed in the state where they have their principal place of business and where they maintain their residence. Since Paul lives in Maryland, his principal residence is not in Virginia, which categorizes him as a nonresident agent.

Nonresident agents are authorized to conduct business in states where they are not residents, provided they meet the licensing requirements of those states. This distinction is crucial for compliance with insurance regulations, as each state has its own set of requirements governing agents and their practices. A special agent typically has a limited scope of authority, while a temporary agent may operate under a temporary license, neither of which applies to Paul's situation.