No breaks or isolated sections are required for the timed station-stop function.
Yes, you can insert isolated trigger sections for the purpose of activating accessories. The diagram is getting a bit messy, but I attempt to show this above.
The basic crossing signal has 2-wires. One wire comes from the transformer Accessory AC (terminal C in the case of the 1032). The 2nd wire comes from the isolated section which supplies Accessory common (terminal B) when the trolley passes over the section.
There are more complex crossing signals with 3-wires (or even more). In the case of a 3-wire crossing signal the accessory always receives Accessory Power from 1032 terminals B and C. The 3rd wire is a trigger signal which activates and addition function (e.g., lowering the gate). The trigger signal is from the isolated section.
Of course the 2-wire accessory can be as "simple" as a light bulb such as to light a station platform only when the trolley is over the isolated trigger section.