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You do not have to place (or rather, you may be *forced* to place) the template entrely within LOS
However, the rules on page 16, under "out of sight", state you cannot allocate wounds from a wound pool to any model that is out of LOS of all models in the unit.
So, in a unit of 1 model, if the model firing cannot see models, it cannot wound them even with a torrent flamer. If you have a unit of more than 1 model, then see if any model can see the target - if so the flamer can wound them.
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