Elam v. First Unum Life Insurance

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The parties submitted conflicting extrinsic evidence, including medical affidavits and articles, to support their interpretations of 'mental illness.'

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Elam elected coverage under the policy for disability due to his having bipolar affective disorder in 1994.

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James E. Elam purchased a long-term-disability policy from First Unum Life Insurance Company through his employer, Smith Barney.

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First Unum paid benefits to Elam from August 9, 1994, through August 9, 1996.

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Elam suffers from bipolar affective disorder.

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The insurance policy limits benefits for disability due to mental illness to 24 months.

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Elam argued that bipolar affective disorder is a physical illness with a biological origin, treated with medication.

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Elam filed suit against First Unum, contending that the term 'mental illness,' as used and defined in the policy, is ambiguous as it applies to his illness.

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First Unum declined to pay further benefits due to a twenty-four-month policy limitation applicable to disability due to mental illness.