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Yes #17 is the contact, usually the contact is just a brass cylinder like tube that is crimped onto the end of the wire, it sticks up through the metal engine casing inside an insulating grommet, likely made from a rubber like material. To get a sort of visual pic of how it works, the electric charge comes up the wire from the points or module to that brass nib, we call that the hot or electrified side, the switch spring steel bridges or connects the brass nib to the engine case and thus shorts out the spark to the spark plug shutting off the engine.