No insulator is needed at the pivot of the point assembly.
Disconnect the condenser and coil from the points. Put a piece of paper between the points, and measure continuity across the points. There should be none.
Do not assume the coil is bad until only the coil has been tested. This coil needs to be tested across both high tension terminals, not from one terminal to ground. If you think the wires are bad, remove them and look into the recesses where the wires went. You should see a metal tab that is attached to the bottom of the coil in each recess. Check continuity between these tabs, but be sure your probes don’t contact the mag plate. If you get something in the kilohm range, the coil is likely good. You do not have to remove the coil for this test.
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