In theory (not in C3 tho). If host (as first player) leaves, you will be forced to drop connection, all users autonomously would select the second player, check if they can establish connection, if he's not - select third.
But then...what if the original host didn't really disconnect? What if he just lost his connection for a short-period of time? 10 seconds and he's back, but players moved already to the second player who for example has worst internet. Would the game had feature of redirecting itself back to the original host if he's back? That's a lot of headache for developers with pretty small benefit for players too.
I think implementing feature for hosts to pass their position to other players if they decide to leave would be better.
Too much redirecting. It could be too huge depending on the game.
This is not something developers practice often.
If you just create your game to play with friends you don't really need this.