With the system that Jeremy has on a 2000 Marquis, there are two circulation pumps. The switch that is marked "coach heat", only turns on the Hurricane circulation pump to pump fluid through the water heater, the engine coolant to Hurricane heat exchanger, and the heat exchangers inside the coach. The switch marked "preheat" turns on the pump that circulates the engine coolant through the engine coolant to Hurricane fluid heat exchanger. The "preheat" pump is not needed if the engine is running since the engine water pump will serve this purpose.
Under the conditions that Jeremy described, if the "coach heat" switch is on and the water heater is being heated electrically, there will be some heat transfer from the water heater to the Hurricane fluid, so you can receive some heat in the coach with the heat exchanger fans running. As commented above, this is not the most efficient heating method, however it does work, but only on coaches that are set-up like the 2000 Marquis, with a Hurricane heater, electric water heater, and separate pump systems with separate switches.
If the "preheat" and "coach heat" switches are both turned on at the same time, most of the heat that is transferred from the water heater to the Hurricane fluid will be transferred to the engine coolant, so you will receive little to no heat in the coach.
Gerald