It's a solenoid valve. I think it controls the amount of fluid that is allowed to bypass the fan motor. The PCM PWM's the solenoid on the actuator to control how open or closed it is, which in turn controls how fast the fan turns. (95% on duty cycle PWM results in the minimum fan speed, 10% on duty cycle results in high fan speed.) There is no full off on the hydraulic fan. It runs at low speed at least, anytime the engine is running. Experience here indicates that actuator failure results in the fan never running at higher speeds.