Following this simple diagram what wire goes where?
It doesn't tell you which is hot and which is neutral, so presumably you can use either black or white (hot/neutral) for Line 1 and Line 2. 

Insulate means connect the three wires together (eg. in a wire nut) and nowhere else (insulated from everything else). 

The green wire must be connected solidly to the metal housing somewhere appropriate, for safety against electrical shock. Have someone qualified have a gander at it before powering it up.