Final answer:
The provision in an insurance contract that limits the insurer's promise to perform is known as exclusions, which specifically outline what is not covered within the policy.
Step-by-step explanation:
The provision of the insurance contract that places limitations on the insurer's promise to perform is the exclusions. Exclusions are specific conditions or circumstances for which the insurance policy will not provide coverage. While the insurable interest must be present at the time of contract purchase and the insuring clause outlines the insurer's basic agreement to compensate the insured for certain losses, it is the exclusions that define and limit the scope of coverage by listing the risks not covered by the policy. For example, in a car insurance policy, events such as driving under the influence may be explicitly listed as exclusions. Therefore, among the options provided, exclusions are specifically designed to mitigate moral hazard and limit potential financial exposure for insurers.
The provision of the insurance contract that places limitation on the insurer's promise to perform is the exclusions. Exclusions are specific situations or events that are not covered by the insurance policy. They are listed in the policy document and limit the insurer's obligation to provide coverage for certain risks.