C0092 indicates a fault with the secondary position sensor that monitors the power transfer unit's (PTU/transfer case) range or mode position. The control module is reporting an implausible, out-of-range, or intermittent signal from 'Position Sensor B'. This can affect the operation or monitoring of the all-wheel-drive / four-wheel-drive system.
The sensor itself is the most common source of the code, as internal wear, contamination, or electrical failure can produce an erratic or out-of-range signal.
Corroded, damaged, or loose terminals in the sensor connector, or chafed/open circuits in the harness to the sensor, can cause intermittent or missing position feedback.
If the sensor was replaced or disturbed, an incorrect air gap, alignment, or mounting position can produce an out-of-range reading.
Internal wear, damaged shift forks, or binding in the transfer-case mechanism can prevent the sensor target from reaching the expected positions.
A genuine control-module fault is uncommon for this code; it should only be considered after the sensor, wiring, and mechanical systems have been verified.
Short trips are usually possible, but the 4WD/AWD system may not function correctly or may default to a single mode. It is best to have it diagnosed before relying on all-wheel drive.
Many transfer cases use two position sensors for redundancy or to sense different ranges. Sensor B is the secondary sensor; a fault here specifically points to that sensor circuit rather than sensor A.
No. The failed component is almost always the position sensor, its wiring, or a mechanical transfer-case issue. Replacing the control module for C0092 is usually unnecessary and should only be considered after hardware causes are ruled out.
Clearing the code may turn the light off temporarily, but if the underlying sensor, wiring, or mechanical fault is still present, the code will typically return.