Mostly true, igavehimlife, BUT note that you can only "restore" (return from insanity) ONE card per turn. If you have multiple characters insane then you must choose which one is restored. Hastur faction can often send multiple characters insane so their opponent's characters are 'delayed' (in your terminology) more than one turn.
In addition, while insane, they are considered to have zero icons, zero skill, and blank text boxes, so the special abilities of an insane character can't be used.
Also note that characters go insane all attachments (weapons, vehicles, etc) go to the discard pile.