Nope, that's not correct.
Insight Lookup occurs during any user- or administrator-defined scan. Some caveats do apply.
Insight Lookup normally applies to running processes, not files. For instance, in a cloud scan, processes are scanned rather than files.
You can force an Insight Lookup with a right-click scan directly on the target file. Note that a right-click scan does not provide the Insight Lookup behavior that is equivalent to what happens when accessing files via portals (applications that can download and execute files).
When a right-click scan is initiated on a selected file, a cloud connection to Symantec can occur if deemed appropriate by the Symantec Endpoint Protection (SEP) client. This scan is strictly used to check for known bad files, so it's a close equivalent to checking the file against the very latest virus and spyware protection definitions Symantec has available, even before Symantec has published them to customers via certified definitions.
The right-click scan does not do an Insight lookup that provides detection against unknown samples (i.e. new and mutating threats that are not currently on the Symantec blacklist). Right-click scans on folders or drives do not scan using Insight Lookup to prevent performance issues.