Adjective:
* Describes a state of mind: "He was declared legally insane."
* Describes something as extremely foolish or irrational: "That's an insane idea!"
Noun:
* Refers to a person with a mental disorder: "The insane were once treated poorly."
* Refers to a state of madness or extreme unreasonableness: "His actions were driven by sheer insane."
So, the answer is both. The meaning will be determined by the context of the sentence.