YES. All isolated/ dual terminal alternators WHEN NEW are supposed to be isolated from ground. That is why they are called "isolated field."
The PROBLEM is that some rebuilders and some owners remove the insulators to convert them back to "early" alternators. This is find IF THE WIRE TERMINAL is removed so you cannot hook a wire onto the grounded terminal. If you accidently hook the green VR wire to the grounded terminal, you will ruin the VR.
If you can find hardware (brush set) to fit the one you have, it will work fine with a new style regulator.
