Since hazard insurance premiums are paid up-front, the buyer will have to reimburse (credit) the seller a portion of the premium at the closing. Suppose that the insurance policy’s coverage began on December 15 of the prior year and the property transaction is set to close on March 16 of a 365-day year. The premium paid originally by the seller was $250. If the coverage will expire as of the end of day December 14 in the current year, what is the dollar amount that the buyer must credit the seller?
A. $0.00
B. $62.33
C. $187.67
D. $250.00