Last week our group fought against a couple of enemies that had a Prismatic Spray spell-like ability. They got us with the effect while fighting their minions, and the barbarian of the team failed the will save versus the INDIGO effect of the spell, effectively being hit with an Insanity spell. Now my sorceress identified the effect and reacted by casting Break Enchantment on the barbarian, since Insanity is a spell of the enchantment school, and Break Enchantment is made to, well, break enchantments =P
Insanity, however, has a specific list of spells that can dispel it (those being Greater restoration, heal, limited wish, miracle, or wish) and it especifically excludes Remove Curse as an option.
On the other hand, Break Enchantment has this to say about its effect:
This spell frees victims from enchantments, transmutations, and curses
and this too
If the spell is one that cannot be dispelled by dispel magic or stone to flesh, break enchantment works only if that spell is 5th level or lower
which, honestly, left me scratching my head.
Now, the DM ended up ruling in our favor and Break Enchantment removed the Insanity from our barbarian friend, but I'd like to know for future reference if this ruling was correct or not.
In summary, the question is: According to RAW, can the spell Break Enchantment remove the effect of Insanity, both when it is cast by itself, and when it is applied by the Prismatic line of spells?