insertCursor = arcpy.da.InsertCursor(pt_lyr, ["SHAPE@XY"]) # this is the pre-existing pt feature class
with arcpy.da.SearchCursor(line_lyr, ['OID@','SHAPE@','NAME']) as searchCursor: # this is the line feature on which the points will be based
for row in searchCursor:
lengthLine = round(row[1].length) # grab the length of the line feature, i'm using round() here to avoid weird rounding errors that prevent the numberOfPositions from being determined