Minimum insertion lines on seatposts and threaded quill stems are best ignored. While each signifies the minimum insertion to prevent component failure, they say nothing about the health of frame and fork.
With the advent of sloped top tubes and extended seat tubes, minimum insertion lines for seatposts have become useless. Many times on modern bikes they indicate an overlap that is unacceptable for frame durability. One of the most common ways for a frame to fail is due to a too-short post fatiguing the front edge of the seat tube and top tube junction.
There should be at least two inches of seatpost inside the seatube below the bottom edge of the toptube to prevent this type of failure.
Proper insertion of a quill stem is harder to determine as it depends on how far the threading extends down the fork’s steerer tube. Optimally, the wedge or expander of the quill stem should be inserted past the end of the threads to prevent the steerer from bulging or cracking when the stem is tightened. Practically, this may be impossible with given fork and stem combinations in which case use particular care upon tightening the wedge bolt. Older stems with an internal expander rather than a wedge style quill seem to be more prone to damaging modern steerers use caution.