Here is the service manual for your engine:
http://1manual.com/Mercury manuals/Service Manual PDFs/TwoStroke/852572r1/cover.pdf
You must have Adobe Acrobat reader installed to use this manual. If you scroll down to the lower part of the opening page, you will see the various engine components in red. Click on the one you want and when the first page opens, click on the "Save As" icon at the top LH corner of the page and you can save it to your computer.
See Section 3C, Oil Injection, Page 3C-9 for the following:
Problem: Warning Horn Stays On When Ignition Key is Turned to ?ON? Position (Engine Cold).
Possible Cause Corrective Action
Faulty Engine overheat sensor. If warning horn sounds a continuous ?beep?, the engine
overheat sensor may be faulty. Disconnect tan/blue overheat
sensor lead at bullet connection. Turn ignition key to
?ON? position. If horn stops sounding, the engine overheat
sensor is faulty.
Possible Cause Corrective Action
Problem: Warning Horn Sounds (Continuous Beep) When Engine is Running and Oil Tank is Full.
Disconnect both low oil sensor leads (blue) at bullet connections.
Connect an ohmmeter between sensor leads.
There should be no continuity through sensor. If continuity
exists, sensor is faulty.
Defective low oil sensor (located in bottom of oil tank).
Parts Listing:
55/60 JET 40/45 (3 CYLINDER) 2-STROKE - Mercury, Mercruiser, Force, etc. Parts Lookup
Gerry