HARTFORD, Conn. (AP) - Connecticut's insurance commissioner says nonprofit insurer HealthyCT needs to be placed under state supervision to protect the company's 40,000 policyholders.

Commissioner Katharine Wade said Tuesday HealthyCT's financial condition is unstable. The Wallingford-based Consumer Oriented and Operated Plan, or CO-OP, has been ordered to stop writing new policies.

The state's health insurance exchange will stop selling HealthyCT coverage.

Wade says the decision to issue an order of supervision was not taken lightly. She says it was done to protect policyholders and "make certain that their claims will be paid under the terms of their policies."

HealthyCT was formed in 2011 to participate in the Affordable Care Act. But it has struggled like some other CO-OPs to attract enrollees.

HealthyCT CEO Kenneth LaLime says policyholders will be covered through their policy periods.