Thanks for this fix:

on 1:TEXT:!insult*:#: {
if ($2 == $null) { notice $nick Please add a nickname after !insult | halt }
if ($2 ison #) {
sockopen insulter www.randominsults.net 80
if ($rand(1,10) == 1) set %insultee $nick
elseif ($2) set %insultee $2
elseif set %insultee $nick }
else { msg $chan $nick Do you see $2 in here anywhere? Try again! | halt }
set %insulterchan $chan
writeini insult.ini insults %insultee $calc($readini(insult.ini,insults,%insultee) + $chr(49))
set %timesinsul $readini(insult.ini,insults,%insultee)
}

I'm playing around with pulling insults from http://www.insultbox.com/

I'll let you know if I get it working.