Final answer:
The term that describes naming a contingent beneficiary as 'all surviving children' is Class designation. This type of designation allows for flexibility in distribution if the primary beneficiary is not available.
Step-by-step explanation:
The term that describes naming a contingent beneficiary as 'all surviving children' is ***Class designation***. This means that if the primary beneficiary is unable to receive the proceeds of a policy or asset, such as in the event of their death, the contingent beneficiary will be the class of all surviving children.
For example, if a policyholder names their spouse as the primary beneficiary and 'all surviving children' as the contingent beneficiary, the proceeds would be distributed among the children if the spouse predeceases the policyholder.
This type of designation allows for flexibility in distribution if the primary beneficiary is not available.