When present in (but not necessarily inserted into) a drawing, Blocks are defined in the Block Collection, and all the elements that make up a block (i.e. lines, circles, attdefs, etc) are a member of that definition, just as lines and circles in a drawing are a member of the Paperspace or Modelspace "block".
The block as defined in the Block Collection does not have an insertion point, as it is just a definition and is separate from ModelSpace and/or PaperSpace in which entities have Insertion Points. You can think of the block definition as another PaperSpace/ModelSpace in which the objects are defined.
When you insert a block, you are inserting a reference to the definition that is contained in the Block Collection - as if you were viewing the block collection through a Viewport might be an analogy. And now that this object is part of PaperSpace/ModelSpace it has an insertionpoint and rotation etc, just as you are likely to find for any other object.
I hope I haven't just confused the hell out of you, but if others believe my explanation to be erroneous, please chime in - I would want to be corrected if I am mistaken for the sake of my own knowledge of such things...
Lee