Doing searches on-line, it looks like you normally need a 3 inch gap all around recessed lighting. However, on the Cooper Lighting Halo Air-Tite fixtures that I'm installing, the instructions say "Fixture is designed for installation where it may come in direct contact with insulation". So, it sounds safe, however, the rolled insulation I'm using says something like "Fire Hazard: Keep this [paper] surface away from heat sources". I'm pretty certain that the pink fiberglass stuff can make direct contact, but, I'm not so certain about the paper side.
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