Wiring problem. Insulator - where and why? KZ750R1 (Gpz) '82

[JudgeHawk]

After having some problems with the ignition on my bike I decided to to some rewiring of the electrical harness.
Stripped the bike of all wiring... checked all cables and soldered new connectors to almost everything.

I am almost at the end of the job, but suddenly I have a component I haven't got a clue about.
I did take pictures of almost everything when stripping the bike, but unfortunately those pictures got lost in a disk crash.

The wiring diagram shows to wires going from the side stand switch to something described as "insulator".
It is connected to the instrument panel and the side stand switch release button as well as a few other things.
I've only found this item on this model and on none of the other wiring diagrams.

Photo of the connection. It was covered with tape: http://212.20.195.92/fragglerock/images/kz750r1/imag0028.jpg
Cutout of the wiring with the "insulator" circled: http://212.20.195.92/fragglerock/images/kz750r1/ks75082_crop.jpg
Gif version of the wiring diagram: http://212.20.195.92/fragglerock/images/kz750r1/kz750r1_82_large.gif

Component key for the most interesting parts:
30. Side stand warning lamp
36. Engine stop switch
37. Starter button
48. Side-stand switch
69. Side-stand relay
70. Side-stand switch release button

Any suggestions/help would be greatly appreciated.