What's a good example of replica set failover / reconnect code for MongoDB / Mongoose 3.x using auth?

I am simulating MongoDB replica set step-downs and trying to have my application and driver automatically use the new primary member without having to restart my application. Right now, once the step down occurs, a query hangs and eventually times out.

Can someone share some example code of a properly configured replica set connection string that works with Mongoose 3.x and recent version of the mongodb-node-native driver (1.1.2)?

Please note: I am using authentication. It is a 2 Node + 1 Arbiter setup.