Im afraid of Asbestos:(

Call a lawyer. Check with your city government and see if they have a landlord/tennent guide book. It probably isn't asbestos, but fiberglass isn't much better. God bless.

What color is the insulation?
When was your house built?
Depending on the state you live in you can take a portion of your rent and put it into escrow until the repairs have been made. Yes, you will upset your landlord, but if you write him a letter explaining why you are withholding rent and informing them that you have set up an escrow account he may make the repairs sooner rather than later. Make sure to send a copy of the letter to yourself, so that you can cover your rear.
If he starts evitcion proceedings, then you can submit the letter and documentation of the escrow account to the court and it will be impossible for the landlord to evict you.
In fact you may see a reduction for the time you have spent with the sub-standard conditions.
I know, I know... they may evict you anyways for some other reason. If you have a lease then you are safe for the duration of that lease. If you are month to month then you may find yourself out on thirty days notice. regardless, the landlord will have to take you to court to attempt collection for the amount you withheld. Take pictures and document the damage. Save some of the insulation to keep a sample if it is indeed asbestos.
If you respond with the answers to the first two questions I've asked, I can give you an idea of the possibility of whether or not the insulation contains asbestos.
Good luck to you either way.