High emotional arousal can be a contributing factor to hallucinations in both psychotic and non-psychotic individuals, but I think if what you're trying to emphasize is the emotional/situational genesis of hallucination the best fit might be *hysterical hallucination*. 

In order to answer this question first we might define what is meant by *hallucination*. (Note: I'm setting aside chemically-induced hallucinations entirely.) 

While there are a number of sub-classes of hallucinations (e.g. auditory, visual, tactile) the general definition has evolved to have what is, essentially, a three-criteria definition of a perception that occurs (1) without a stimulus, (2) with the 'full-force' of a real perception and (3) can not be voluntarily controlled. According to Prof. Dr. Gopal Chandra Kar and Dr. Samrat Kar's ["Aetiology of Hallucinations: Review"](http://www.orissajp.com/pdf/06/2.pdf) in the *Orissa Journal of Psychiatry*:

> Esquirol (1932) 's original definition ofHallucination as a
> 'perception without an object' Jasper, in 1965 defined hallucination
> as corporeal and tangible. Jasper also suggested the definition 'a
> false perception-which is not a sensory distortion or
> misinterpretation, but which occurs at the same time as real
> perception. In 1997, Cutting defmed hallucination as 'perception
> without an object (within a realistic philosophical framework) or as
> an appearance of an individual thing in the world without any
> corresponding material event'. In 1988, Janzarik defined hallucination
> without associating them with perception at all, as free running
> psychic content Working definition of hallucination: any percept-like
> experience which (a) occurs in the absence of an appropriate stimulus,
> (b) has the full force or impact of the corresponding actual (real)
> perception, and (c) is not amenable to direct and voluntarily control
> by the experimenter (slade and bental, 1988). Jasper first of all
> distinguished between true perception (true hallucination and mental
> images).

While both of your examples seem to have some relation to a psychiatric disorder (in the first you reference being 'driven mad' and, while I don't remember the exact moment to which you are referring in "One Flew Over the Cuckoo's Nest" the setting is pretty suggestive), there is some research that examines hallucination as non-pathological process- or, at least, that they can arise from external emotional stimuli. 

The best fit for this sort of emotionally-induced hallucination would probably be the psychoanalytic theory which (quoting from the same paper as above): 

> ...postulates 'Hallucination may be substitutes for patient's
> inability to deal with objective reality and may represent their inner
> whishes or fears. 
>
> Hallucination can be result of intense emotions,
> suggestion, disorder of sense organs, sensory deprivation and disorder
> of central nervour system (Hamilton, 1994).

Such emotionally-driven hallucinations may be referred to as *[hysterical hallucinations][1]* (though, by no means, does this term cover *all* hallucinations with any basis in emotion) which:

> ...have a sudden and dramatic onset, and that they are often
> precipitated by a profoundly upsetting situation or event.


  [1]: http://hallucinations.enacademic.com/908/hysterical_hallucination