No stock or mutual life insurance company, after receiving notice from the Insurance Commissioner that its reserve liability, after all other debts and claims against it, including fifty per centum of its capital, have been deducted, has been impaired, shall issue new policies, under its authority to do business in this Commonwealth, until its funds have become equal to its liabilities and it has obtained from the Insurance Commissioner a certificate to that effect, with authority to resume business. When a life insurance company organized under the laws of this Commonwealth has been notified to cease doing new business, the Insurance Commissioner may, in case it appear from his examination that no fraud or gross incompetence or recklessness is shown to exist in the management, permit the officers of the company to continue in charge of its business for one year; and he may renew the permission, if he is satisfied that the company is likely to retrieve its affairs, or he may institute proceedings to determine what further shall be done.