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Hi Grifman,
I'm gonna flat out guess you have an alarm system. This guess is based solely on my experience with a (92) 940 that has one dealer-installed VolvoGuard with magnetic reed switches in that location. If not an alarm, a remote starter will need a hood switch for safety. Or did they do away with the (toxic) mercury switch that used to operate the under hood lamp by the time '98s came out.
For use as a clue, does it look factory?
Just a guess.
--
Art Benstein near Baltimore
If you don't pay your exorcist, you get repossessed.
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