I have done some more testing and have some questions relating to the above. Please excuse my ignorance.
Someone recommended enabling management traffic on another kernel as well. It is my understanding that all this does is give you redundancy for the HA heartbeats. I have enabled this on my storage vmkernel.
When I disconnect my masters management network an election appears to happen. The other host remains slave but there is no master available. vCenter cannot find an HA master (until I reconnect network to management switch and the host is still master). Would there need to be an election at all given that there is a redundant management option? And if there is an election why does the other host not become master?
What I do see now though is that the original master host and the VM appears as disconnected ( as I assumed would always be the case - hence the original question) .