Reported on an N-Scale chat thread:

"I found another use for Bullfrog Snot ... While installing a wired decoder, I bent the leads on a resistor for the front headlight with heat shrink on it and it exposed a little of the lead on the resistor. Not good... just as a percaution, I wanted to insulate it. Decoders don't like shorts... Then had a idea. Bullfrog Snot. I have put it on 4 drivers (2 axles) of a 2-6-6-2 ... ran and pulled great. So I put a drop on each lead, then let dry. And it work(ed) great. Hum? Now I feel better. So if anybody has Bullfrog Snot, it can come in handy for a insulator. In my case it worked. It might just work like liquid electrical tape in "some" cases.
A plastic insulator. Good stuff."

So there you have it. The insulating properties put to good use!