Mike and Phil co-own an insurance agency. Phil often collects premiums from insureds on and insurer’s behalf and commingles the money in his personal account. He earns a higher interest rate by maintaining a higher balance in his account. He carefully keeps track of what amounts belong to him and what amounts need to be forwarded to an insurer. No one is accusing Phil of stealing, but Mike is concerned. Is Mike’s concern warranted? Explain your answer.