Prior to purchasing such reinsurance, the Secretary of Banking shall determine, as best he can according to his judgment, the total amount of insurance issued by the corporation of which he has taken possession, and estimate, as best he can according to his judgment, the amount of such insurance upon which the corporation had an outstanding liability on the day such corporation came into his custody and charge; and of these two facts determined by him, the secretary shall file written certificates in his office and also in the records of the court under which his certificate of possession was filed. He shall then use the reserve fund in his custody (1) to pay the fee for examinations by the reinsuring company, and (2) with the balance of the fund to purchase as large an amount of insurance as can be acquired therewith. The blanket policy for such reinsurance shall contain a clause that each policyholder of the company which originally issued the insurance reinsured shall be entitled to recover in his, her, or its own name, not according to the amount of the original policy, but in the proportion that the total amount of the reinsurance purchased bears to the total amount of outstanding insurance determined to be in existence by the secretary and shown by his certificates on file under the provisions of this act: Provided, That the total liability of the reinsuring company shall not exceed the amount of the blanket policy issued under section one thereof.¹