The 98 in question here, does have have a red indicator light, on the dash, just left of steering wheel where the headlight switch is located. It flashes when the system is armed. When you press the unlock button on the fob the light stays on solid. When its solid on, you can open the doors without the alarm going off BUT after about 30 seconds or so it beeps once, headlights flash once, and then the red light on dash starts blinking again. It doesn't matter what your doing, every 30 seconds it will do that. My husband had to keep the fob in his pocket while checking hoses and fluids last night. He ended up having to use the fobs unlock button to disarm it so it wouldn't go off while under the hood checking stuff. I think I heard him hit that button unlock button 10 or more times, easily.
Also, I received the Build Sheet from Jeep Cares today and it shows all that was factory on the Jeep. It shows it came with GXMS Keyless Entry with Panic Alarm. So is my problem with all of the lock sensors, since using the key in any door does not disarm the alarm. Or is it a PCM or BCM problem needing to be reset? I would like to disable it altogether but don't want to have any other problems as a result. Is this really only something a dealer can fix? It just doesn't make any sense.
wifes 95zj 4.0 42re np249 201,000mi
mine 89 xj 4.0 aw4 np242 445,000mi
nephews 98 zj laredo 4.0 2WD 213690mi