I finally paid for an answer, and others may find this interesting:
The switch is important. You need to fix it asap. The thermo switch controls fan operation. When it gets hot the resistance goes away and the wire goes to ground turning on the fan. Short the wire to something metal or battery ground and see if the fan comes on
The best replacement is a factory Toyota part. I know they are more (I have a 86 pickup trust me) but they are correct and you never have problems with them. The ATF fluid goes to the radiator to be cooled. If the fan doesn't come on when the thermo switch goes to ground the ATF may get too hot and the transmission could overheat.
After a few calls I found two part numbers for you. The difference is the production date of the car. With a VIN number any Toyota dealer can tell you which one it is. The numbers are:
8942815-011
89428320-10
Sorry I couldn't give you the exact number but without knowing the production date the answer is these two. The first number is early production and the second is later. Get this part at Toyota to avoid problems. It's more expensive but the thing will work correctly and you won't have anymore issues.
[Our Ukiah parts man says (with 26 years of experience behind this answer) that when a car is right on the divide as mine is, of course, that it applies to the later part number, ie, 8942815-011

