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My car is a 1997 965, should be the saml for your car, although I know some things changed.
Do you have an owner's manual? I wondered about the little thing like a screw-head at the lower right corner of the switch. It is a 3-position switch. It controls how the driver wants to have the day running lights set. We chose to have them non-op. The Canadian market, I understand, required the DRLs, so the switch gives Volvo both markets.
There is a weakness in the 960/s-v?90 light switch which I found after mine failed similar to yours. Fortunately the 22 miles trip home was either out in the country where use of the high-beam flasher allowed me to see the roadway, or more residential areas were well-lit.
I replaced the switch with a new Volvo part. If you are planning to do the job, post back and I can privide more info.
Good Luck,
Bob
:>)
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