I don't know about your second question, sorry.
There is a vac line to the valve on the Tip. When the tr anny fluid reaches a certain temp it activates that valve which then opens to route the tr anny fluid through the tr anny cooler... just like the oil cooler on the engine. Matter of fact they look the same although for the tr anny I believe it won't fit an "S" cooler.
Can the absence of the cooling harm the tra nny? Likely, as "heat is the number one killer of tr annies".
If I am incorrect surely JFP will chime in sooner or later.
