You've got it right, just as atholl explained above.
That 4-position switch, has a resistor on the back of it to cut down the current for a low charge. The L(ow) is the only position in which current is passed through the resistor. In the H(igh) position, the resistor is back out of the equation, and the generator current has a straight run to the battery. In the D(im) and B(right) positions, still no switch resistor, with the light filaments taking the place of the resistor to limit charging current. (In the D(im) position, there is a second, separate resistor on the back of the swithc to limit the current to the light, which is cut out in the B(right) position.
(One result - if you see a higher than normal charge while your lights are on, look for a burned out bulb.)
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