Prevent accidental terminal pull-out. Ring terminals have a single hole in the contact surface for making secure connections with screws or bolts.
The built-in insulation helps prevent damage to wires due to flexing and vibration.
Use these bare terminals in high-temperature environments where insulation would get damaged and is therefore impractical, such as in light fixtures.
These bare terminals are for use in very high temperature environments that would damage insulation, such as ovens.