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The first thing you need to do is find out what caused the code that activated the light. I recommend going to http://www.volvospeed.com/volvo_performance.php.
Bay 13 lists most of the codes and the procedure for reading them and resetting the light. I've found Volvospeed.com to be a great source of information for my 850 (not much help for my other volvos).
Some 1995 850s are OBDII compliant (mine is). OBDII compliant volvos have an OBDII sticker on the hood and say OBDII on the coin holder on the center console. That is where the connection is located. If you are OBDII compliant, you can go to most AutoZone or Advance Auto Parts stores and they will read and clear the codes for you free of charge.
It is important to reset the code and see if it reappears. The 850s are notorious for stray codes that activate the light when there is not real problem. In most cases, I reset the light and it won't come on for another 3 or 4 months. I purchased an OBDII reader for $120 and it has been one of the best investments I ever made. It not only reads my 850, but my other cars and trucks as well. It is really important for the newer models since it is not possible to read the codes any other way.
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