And how do I fix it?

I searched far and wide for a replacement 91-92 air bag. I could not find any body that makes new ones. And the few used ones that show up on ebay usually have the same problem. I swapped my air bag wheel out for a 4th gen that was in better shape. Still looks stock for the most part.

Did the same, the bag can be wired to work as well

I just pitched mine and put in a nice three spoke from an earlier car.

definitely a nice upgrade too!!!!

I wonder if other GM airbag wheels would fit.

Yes all GM 90-92 airbags ate the same. Can also be found on lotus and other foreign subsidiaries of the same years.