Here is the latest Iowa news from The Associated Press at 3:30 a.m. CDT

IOWA CITY, Iowa (AP) — Life insurance companies are setting up “shadow insurers” to take on some of their liabilities and free up some of their reserves. Critics say the practice allows the companies to mask their true financial positions and poses a long-term risk to policyholders. Now one critic is seeking to force the release of records related to the deals in Iowa, which has encouraged the practice.

DES MOINES, Iowa (AP) — Gov. Terry Branstad has issued disaster proclamations for two northeast Iowa counties that endured severe storms and flooding. Branstad Monday issued the proclamations for Bremer and Chickasaw counties, allowing state resources to be used to aid in recovery efforts from storms Aug. 23. Branstad’s action also activates the Individual Assistance Program for residents of the two counties, providing grants of up to $5,000 for certain households for car repairs, clothing, food and temporary housing.

DES MOINES, Iowa (AP) — The Iowa Board of Psychology is explaining why it declined earlier this month to adopt a rule that would have prohibited Iowa-licensed psychologists from trying to reverse a patient’s sexual orientation with a practice known as conversion therapy. Gay rights advocates petitioned the board in February to consider the rule. The board says it knows of no licensed Iowa psychologist engaging in conversion therapy and will investigate reports of those employing a therapy deemed harmful or unethical.

DES MOINES, Iowa (AP) — A representative for one of the insurance companies overseeing Iowa’s newly privatized Medicaid program says it has lost money during the system’s implementation. Kim Foltz, CEO for UnitedHealthcare’s Iowa operations, cited information in a new quarterly report in telling a legislative oversight committee on Monday at the Iowa Capitol that the company has lost money. She later declined to provide specific information on a dollar figure.