Is this a Kato term? Or something I missed in 40 years of model trains?
Yes you can connect signals to only indicate turnout position, it is one of the many things the prototype does.
signaling can be very simple or very complex, depending on what you want and how close you want to follow the prototype, and, what prototype you want to follow.
Switch-Kat is NCE’s stationary decoder for Kato turnouts - Kato turnouts are special, they use DC pulses to move the coil. Polarity one way, it throws tot he diverging route, reverse polarity it throws to the normal route. There are only 2 wires to the switch motor instead of 3 like a traditional twin-coil, but the need momentary power, not continuous like a Tortoise.
You can’t hook signals right to them, they have no continuous power. But you might be able to hook LED signals to a Switch-It and assign it the same address as the Switch-Ket so both operate at the same time. The Switch-It is designed to run Tortoises, so you cna use LEDs, but you’ll need a resistor on each to limit the current to 10-15ma. You’ll need a lot less Switch-Its since each one controls 2 turnouts, whereas the Switch-Kat is just one. You can probably also use a Switch-8, one of those with LEDs for every 8 Switch-Kats. The wiring diagrams in the instructions show how to put LEDs in series with the Tortoise - for your application you will simply replace the Tortoise with a resistor. Value of said resistor to be determined by the rating of the LEDs and the actual voltage that is applied at the output terminals. It’s less than 12 volts, because a Tortoise connected to a Switch-It with no LEDs moves a bit slower than one connected directly to 12V.
Kato track, N scale and stationary decoders are all off my radar - but signaling, that’s something a know a little something about. Sounds like you have a good plan for the OP.
NCE says The Switch-Kat has outputs for switch position indicator lights and it remembers the switch position when power is removed from the layout so that at power on, the indicator lights will show the correct switch position. So I was hoping I could connect the signal right to these outputs vs wiring LEDs with resistors.
I’m a new to DCC so please excuse my ignorance. If I can’t connect directly your suggestion with the switch its and switch 8 will most likely be implemented. I just wished their was an easier way since when I purchased the switch kat the seller said it would accomplish both tasks; stationary decoder and operate my indicator lights/signals for routes.