Balloon frame fire blocking
Blocking is required wherever a fire or draft can pass from horizontal plane to a vertical plane or vice versa. In otherwords, where the wall meets the floor and the floor meets a ceiling. If fire can pass through one section and travel to another, it needs to be blocked. The 2012 IRC code says that a 16" section of fiberglass insulation will suffice as fireblocking. If you are insulating the outside walls as it is, you will be covered.