Yes, temperature gauge senders have to be in coolant to work. I've heard stories where people have lost their coolant and didn't know their engine was cooking as the gauge didn't move. (I haven't had personal experience of this . . . yet.) As for your transfer case, I can't say as I'm not familiar with these modern new-fangled motor cars.
Also, I've thought about an oil cooler that would be gravity or heat-powered but I've just got a feeling you wouldn't get the flow you'd need.
I remember there's a drain plug on my old Roverdrive - if someone's game they could take some oil flow off this and run it down through a cooler and then into the transfer case, but that's not an experiment you'd want to get wrong!
At any given point in time, somewhere in the world someone is working on a Land-Rover.
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