91 Previa: oil level light on

91 Previa Van: 141000 miles Oil Level light went on twice last 2 months, this car has the oil reservoir which can hold 2 quarts of oil. When this light goes on, engine oil auto feeder system pumps oil over from reservoir to crank case. I checked the oil stick, it is 1 inch over the full mark. This oil level sensor costs about $350. Should I just ignore the oil level light , and leave the reservoir empty at all time?

Thanks for the help,