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The IMA light does come on on older Insights (at least on mine) when the battery is exhausted. Rebalancing the battery pack helps, but basically I just learn not to run down the battery beyond a certain point, by e.g. downshifting on grades.
To reset the IMA codes, you need to pull one of the fuses in the box by the driver's left leg and wait 10 seconds or so. (With engine off: I use the key to pop out the fuse.) I think it's number 18: I put a dab of epoxy on mine so I can do it by feel.
As I recall, replacing the O2 sensor is an easy fix, about like changing a spark plug. The sensor isn't cheap, though.
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