The push pin for points is probably worn/broken,there is an outside chance cam lobe worn ,but you'll have to replace seal & push pin or bushing/push pin 1st to see if that cures problem,the problem being on your mod eng briggs used 3 different seal/pin or bushing/pin assemblies,in all case's to service push pin points will have to be removed.
Goto link below,click on briggs eng parts,enter eng mod# on left side of pg,when you get to mod listing pg select mod# 326437-0027-99(1st one)look at assembly drawing/parts list for cylinder,head,spark plug,confirm that you have key#'s 722-724A,342 on eng,if so remove retainer ,pull seal/plunger assembly out of block & check/replace.
IF above parts are NOT on your eng,then goto 2 addresse's listed at end of reply & look at both style bushings/plunges & determine which style on eng,same will tell you how to remove each style,if you have either of these style's,bushing/push pin are replaced as a unit,if pin worn,damaged or broken take eng mod/type & sn with you to local mower shop & have them lookup & order a new assembly.
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