What's the insulation for?

While working on the refrigerator gas line recall several months ago I noticed that there was no batt insulation on the side of my refrigerator ( like there was on the factory repair photos ). Can someone tell me what that piece of insulation is for? Is it suppose to shield the wood cabinet wall from the refrigerator fins or the combustion exhaust ducts at the front of the trailer? Is it to protect from heat while refrigerator is using propane option or all of the time? Also, how big of a piece of insulation is needed?
Thanks for the help.

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