In 1992, John R. Williamson was looking for a way to fund two trusts that he was creating. While his personal health was good and his business was thriving, Williamson was willing to make large, up-front payments to fund the trusts. A vanishing-premium policy is one where, after a certain number of premium payments have been made, the policy itself generates sufficient income through dividends and interest to pay any additional premiums. How quickly the premiums will vanish depends on several factors, including mortality rates, expenses, dividends, and interest rates. In actuality, the premiums never vanish.
Premiums are due and payable for life.
However, if the policy generates enough income, then the premiums are paid from the income. In December 1996, Williamson sued Indianapolis Life in the United States District Court for the Northern District of Alabama, after realizing that additional premiums would be necessary after the 10-year period expired in 2002. Indianapolis Life moved for a summary judgment, arguing that Williamson had yet to sustain damage and, therefore, could not presently pursue a cause of action. Judge Robert B. Propst has certified to us the following questions, pursuant to Rule 18, Ala. R. App. There must be a bona fide existing controversy of a justiciable character to confer jurisdiction upon a court.