485BPOS 1 ldrsplus23hlcombo.htm 485BPOS ldrsplus23hlcombo


As filed with the Securities and Exchange Commission on November 15, 2016
File No. 333-101948
811-04972
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

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FORM N-4
REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OF 1933
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PRE-EFFECTIVE AMENDMENT NO.
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POST-EFFECTIVE AMENDMENT NO. 26
/X/

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940

AMENDMENT NO. 606
/X/

HARTFORD LIFE INSURANCE COMPANY
SEPARATE ACCOUNT SEVEN

(Exact Name of Registrant)

HARTFORD LIFE INSURANCE COMPANY

(Name of Depositor)

P.O. BOX 2999
HARTFORD, CT 06104-2999

(Address of Depositor's Principal Offices)

(860) 547-4390

(Depositor's Telephone Number, Including Area Code)

LISA PROCH
HARTFORD LIFE INSURANCE COMPANY
P.O. BOX 2999
HARTFORD, CT 06104-2999

(Name and Address of Agent for Service)
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APPROXIMATE DATE OF PROPOSED PUBLIC OFFERING:
AS SOON AS PRACTICABLE AFTER THE EFFECTIVE DATE OF THE REGISTRATION STATEMENT.
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It is proposed that this filing will become effective:
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immediately upon filing pursuant to paragraph (b) of Rule 485
/X/
on November 15, 2016 pursuant to paragraph (b) of Rule 485
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60 days after filing pursuant to paragraph (a)(1) of Rule 485
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on pursuant to paragraph (a)(1) of Rule 485
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this post-effective amendment designates a new effective date for a previously filed post-effective amendment

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The Prospectus and Statement of Additional Information (including financial statements) are incorporated in Part A of this Post-Effective Amendment No. 26, by reference to Post-Effective Amendment No. 25 to the Registration Statement on Form N-4 (File No. 333-101948), as filed on April 21, 2016.

A Supplement to the Prospectus, dated November 15, 2016 is included in Part A of this Post-Effective Amendment. This Post-Effective Amendment No. 26 does not supersede Post-Effective Amendment No. 25 filed on April 21, 2016.







PART A


 


Supplement Dated November 15, 2016 to your Prospectus dated May 2, 2016
This supplement describes an option to defer your Annuity Commencement Date. We refer to this option as the Annuity Commencement Date Deferral Option (“Deferral Option”). This option may only be elected once.
If you elect the Deferral Option, then, after your Annuity Commencement Date, the Contract terms described below will be modified by this Supplement. All inconsistent terms set forth in the Prospectus will not apply after your Annuity Commencement Date.
If you choose the Deferral Option, your Annuity Commencement Date is deferred until the Annuitant’s 100th birthday (the "Deferred Annuity Commencement Date"). In addition, all guaranteed death benefits and guaranteed living benefits, and charges associated with optional guaranteed benefits, terminate as of your Annuity Commencement Date. From your Annuity Commencement Date until the Deferred Annuity Commencement Date, your death benefit is equal to your Contract Value. In addition, if you are invested in the Fixed Accumulation Feature, then, after your original Annuity Commencement Date, the total amount in that Feature is limited to 20% of your Contract Value. (The Fixed Accumulation Feature is part of our General Account, where you are able to allocate a portion of your Contract Value. In your Contract, the Fixed Accumulation Feature may be called the Fixed Account. The Fixed Accumulation Feature was not offered in all Contracts and is not available in all states. Effective October 4, 2013, we no longer accept new allocations or Premium Payments to the Fixed Accumulation Feature except for contracts issued in Massachusetts.)
The details of the Deferral Option are described beginning on page 2 of this Supplement.
This Deferral Option will not be appropriate for all Contract Owners, and it may not be in your best interest to elect the Deferral Option. We urge you to discuss the Deferral Option with your Financial Intermediary and tax adviser to help you determine if the Deferral Option is right for you. (Financial Intermediary means the broker dealer through whom you purchased your contract or the investment professional who is listed in our administrative systems as the agent of record on your Contract and services your Contract.)
We are making the Deferral Option available to you because part of our long-term strategy is to pursue initiatives such as the Deferral Option to reduce the liabilities associated with our variable annuity business.
You are not required to elect the Deferral Option and you do not need to take any action if you do not want to elect the Deferral Option.
We have provided examples below of some Contract Owners who may benefit from choosing the Deferral Option and some who may not benefit. Whether you will benefit or not depends, however, on your individual circumstances and must be assessed by you and your Financial Intermediary and tax adviser.
Examples of Contract Owners Who May Benefit from Choosing the Deferral Option:
Those who wish to postpone annuitization or liquidation of their Contract on their Annuity Commencement Date because they do not need or want annuity payments or liquidation proceeds at that time;
Those who accept the market risk that continued investment (without the protection of Living Benefit, Death Benefit or other guarantees) in their Contract after their Annuity Commencement Date may result in a decline of their Contract Value. For example, the Contract Value on their Deferred Annuity Commencement Date being smaller than at their Annuity Commencement Date; or leaving a smaller amount to their beneficiaries than if they annuitized or liquidated at their Annuity Commencement Date;
Those who have chosen The Hartford’s Principal First or The Hartford’s Principal First Preferred rider, but do not want to use the annuitization option described in those riders which will terminate if they choose the Deferral Option;




Those who have chosen The Hartford’s Principal First or The Hartford’s Principal First Preferred rider and are comfortable taking the risk that the Annuity Payout Options available at their Deferred Annuity Commencement Date are more valuable than the annuitization option described in those riders, which will terminate if they choose the Deferral Option;
Those who wish to maintain investment of their assets in a tax-deferred status with The Hartford subject to their Contract terms and the terms of the Deferral Option after the Annuity Commencement Date;
Those who may otherwise consider transferring their assets to another annuity provider and restarting a Contingent Deferred Sales Charge; and
Those whose death benefit payable on the Annuity Commencement Date is equal to the Contract Value and, therefore, on that date do not lose any death benefit amount by electing this Option. After your Annuity Commencement Date, your Death Benefit will remain the Contract Value, which will fluctuate according to market conditions, as discussed in the second bullet point above.
Please note that the benefits of exercising the Deferral Option are only available to Contract Owners who choose the Deferral Option.
Examples of Contract Owners Who May Not Benefit from Choosing the Deferral Option:
Those who need or want annuity payments or liquidation proceeds on their Annuity Commencement Date (for example, to pay current expenses or provide income);
Those who wish to mitigate the market risk that continued investment (without the protection of Living Benefit, Death Benefit or other guarantees) in their Contract after their Annuity Commencement Date may result in a decline of their Contract Value;
Those who are receiving Automatic Income Payments and would rather liquidate or annuitize their Contract rather than take the risk that continuing to receive those payments after deferring their Annuity Commencement Date may result in termination of their Contract;
Those who wish to annuitize or liquidate on their Annuity Commencement Date, rather than take the risk that, if they die during the deferral period, their beneficiaries may receive less than if the Contract had been annuitized or liquidated at their Annuity Commencement Date;
Those who do not wish to take the risk that laws, including tax laws, may change in ways that may diminish or eliminate advantages of deferring their Annuity Commencement Date; and
Those who wish to invest their proceeds in another investment rather than to continue to invest their assets with The Hartford subject to the Contract terms and the terms of the Deferral Option.

Annuity Commencement Date Deferral Option (“Deferral Option”)
On or about February 11, 2017, we will allow eligible Contract Owners to defer their Annuity Commencement Date pursuant to the provisions outlined below. If you elect the Deferral Option, you may defer your Annuity Commencement Date to the Annuitant’s 100th birthday.
We will notify you prior to your Annuity Commencement Date of the options available to you at your Annuity Commencement Date. During the Election Period, which begins when we send you the Deferral Option rider and ends on your Annuity Commencement Date (“Election Period”), and which will begin at least ninety days before your Annuity Commencement Date, you may choose any of the available options.
The Hartford may withdraw the Deferral Option at any time.
If one of the options available at that time is the Deferral Option and the following conditions are met during the entirety of the Election Period, you may elect the Deferral Option:
You own one or more of the following series of contracts1 issued by Hartford Life Insurance Company or Hartford Life and Annuity Insurance Company:
The Director M                Hartford Leaders Series II/IIR/III
First Horizon Director M            Wells Fargo Leaders Series I/IR/II
1 For purposes of this Supplement, we use the word "Contract" to mean a contract or certificate, as applicable.

2



Director M Platinum                Hartford Leaders / Chase Series I/II
AmSouth Variable Annuity M            Classic Hartford Leaders
The Director M Select                Hartford Leaders Select
The Huntington Director M            Huntington Hartford Leaders
Fifth Third Director M                Hartford Select Leaders Series V
Wells Fargo Director M             Hartford Leaders Access Series II/IIR/III
Classic Director M                Hartford Leaders Edge Series II/IIR/III
Director M Ultra                Hartford Leaders Plus Series II/IIR/III
Director M Access                Hartford Leaders Outlook Series II/IIR/III
The Director M Edge                Nations Outlook Variable Annuity Series II/IIR
The Director M Plus                Huntington Hartford Leaders Outlook Series II/IIR/III
AmSouth Variable Annuity M Plus        Classic Hartford Leaders Outlook Series II/IIR/III
The Director M Select Plus            Wells Fargo Leaders Outlook Series I/IR/II
The Director M Outlook            Hartford Leaders Select Outlook
First Horizon Director M Outlook        Hartford Select Leaders Outlook Series III
Director M Platinum Outlook            Hartford Select Leaders Series II/IIR/III/IV
AmSouth Variable Annuity M Outlook    Hartford Select Leaders Outlook Series I/IR/II
The Director M Select Outlook        Huntington Director M Outlook        
Wells Fargo Director M Outlook        Classic Director M Outlook
The Director Series VIII/VIIIR            The BB&T Director Series III/IIIR
AmSouth Variable Annuity Series III/IIIR    The Director Select Series III/IIIR
The Director Choice Series III/IIIR        The Huntington Director Series II/IIR
Fifth Third Director Series II/IIR        Wells Fargo Director Series II/IIR
Director Ultra                    Director Preferred Series II/IIR
Director Epic Series I/IR            Putnam Hartford Capital Manager Series VIII/VIIIR
Nations Variable Annuity Series III/IIIR    Hartford Leaders Epic Series I/IR
The Director Edge Series II/IIR        Putnam Hartford Capital Manager Edge Series III/IIIR
The Director Plus Series II/IIR        AmSouth Variable Annuity Plus Series II/IIR
Director Select Plus Series II/IIR        Director Preferred Plus Series II/IIR
Director Epic Plus Series I/IR            Putnam Hartford Capital Manager Plus Series II/IIR
Hartford Leaders Epic Plus Series I/IR    The Director Outlook Series II/IIR
First Horizon Director Outlook Series I/IR    BB&T Director Outlook Series II/IIR
Director Select Outlook Series II/IIR        Huntington Director Outlook Series II/IIR
Classic Director Outlook Series II/IIR        AmSouth Variable Annuity Outlook Series II/IIR    
Wells Fargo Director Outlook Series II/IIR    Director Preferred Outlook Series II/IIR
Classic Director Outlook Series II/IIR        Wells Fargo Director Outlook Series II/IIR
Director Preferred Outlook Series II/IIR    Director Epic Series I/IR
Hartford Leaders Epic Series I/IR        
Putnam Hartford Capital Manager Outlook Series II/IIR
The Annuity Commencement Date Deferral Option is not available if you have elected any of the following living benefit riders: The Hartford’s Lifetime Income Builder, The Hartford’s Lifetime Income Builder II, The Hartford’s Lifetime Income Foundation, The Hartford’s Lifetime Income Builder Portfolios, The Hartford’s Lifetime Income Builder Selects;
You have not elected the Deferral Option previously;
Your beneficiaries have not elected a death benefit settlement option;
You are within 90 days of your Annuity Commencement Date and you are at least 90 years old on your Annuity Commencement Date;
The state in which your Contract was issued has approved the Deferral Option rider;
We must receive your signed Annuity Commencement Date Deferral Option Request Form in Good Order at our Administrative Office to elect the Deferral Option. (In Good Order means receipt of your authorization, when required, and completion of requisite forms. Transactions will not be considered In Good Order unless received by us in our Administrative Office or via telephone or facsimile. Generally, our request for documentation will be considered In Good Order when we

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receive all of the requisite information on the form required by us.) We must receive the Annuity Commencement Date Deferral Option Request Form on any Valuation Day up to and including the Annuity Commencement Date, provided we receive it no later than 4:00 p.m. Eastern Time or, if earlier, the close of the New York Stock Exchange on the Annuity Commencement Date. If the Annuity Commencement Date falls on a non-Valuation Day we must receive it by the prior Valuation Day;
You must not be beyond your Annuity Commencement Date or have annuitized your Contract;
You must be a customer of a Financial Intermediary in accordance with our records;
The Contract is not owned by a Charitable Remainder Trust (The Annuity Commencement Date of these contracts is the Annuitant's 100th birthday); and
During the Election Period, we have not received a request to process additional Premium Payments through a 1035 exchange, direct transfer or direct rollover.
This supplement to your prospectus is being provided to all Contract Owners at this time, but does not signify approval of the Deferral Option rider by any state and does not mean that the Deferral Option will be available in the future even if the rider has been approved by your state. Approval by your state is not an endorsement by that state of the Deferral Option.
We are in the process of seeking state approval for this Deferral Option. As you approach your Annuity Commencement Date if you have questions about whether or not this option is available in your state, please call us at 1-800-862-6668.
If you are eligible for the Deferral Option and if you properly elect the Deferral Option, the following changes to your contract will occur on your Annuity Commencement Date:
Your Annuity Commencement Date will be deferred to the Annuitant’s 100th birthday ("the Deferred Annuity Commencement Date");
All living benefit riders and all optional Death Benefit riders and their associated fees will terminate. No previously paid fees will be refunded. Specifically:
The Death Benefit described in your Contract and any optional Death Benefits will be terminated and the new Death Benefit will be the Contract Value calculated as of the date of receipt of Due Proof of Death at our Administrative Office. During the time period between our receipt of Due Proof of Death and our receipt of complete settlement instructions from each Beneficiary, the Death Benefit amount will be subject to market fluctuations;
All optional Death Benefit rider charges will no longer be assessed;
The Hartford’s Principal First and The Hartford’s Principal First Preferred riders including any guaranteed income benefit, death benefit settlement option and any annuitization option under these riders (i) will be terminated in their entirety; (ii) the charge for these riders will no longer be assessed; and (iii) your contract will then be subject to the contract minimum rules. If you are receiving Automatic Income Payments under The Hartford’s Principal First or The Hartford’s Principal First Preferred riders, you may continue to do so once the Deferral Option is effective. However, you will then be subject to the contract minimum rules. That is, if after any withdrawal, whether it be a systematic withdrawal or a one-time partial Surrender, your Contract Value falls below the contract minimum, we will close your contract and pay the full Surrender Value. The contract minimum is generally $500, but varies by state and may be charged in the future in our sole discretion, with notice to you. The minimum may be obtained by calling us at 1-800-862-6668;
No other Death Benefit, optional Death Benefits or living benefits apply. All optional Death Benefits, living benefits and their associated charges will terminate;
You may not transfer money into your Contract through a 1035 exchange, direct transfer or direct rollover unless the request to transfer money was received prior to the Election Period;
At least 80% of your Contract Value must be invested in Sub-Accounts. That is, no more than 20% of your Contract Value may be allocated to the Fixed Accumulation Feature. Any amount over 20% of Contract Value allocated to the Fixed Accumulation Feature on the Annuity Commencement Date will be moved out of the Fixed Accumulation Feature via a Dollar Cost

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Averaging program with a duration of six months or less according to the instructions that you provide to us on the Annuity Commencement Date Deferral Option Request Form. Any existing restriction on the maximum amount transferable from the Fixed Accumulation Feature during any Contract Year will be waived on and after the Annuity Commencement Date. The Contract Value is calculated on the Valuation Day immediately before the transfer;
Similarly, if there is a Dollar Cost Averaging Program already established from the Fixed Accumulation Feature it will be terminated. You may begin a new Dollar Cost Averaging Program by contacting us after the Annuity Commencement Date;
The default annuitization option for Qualified Contracts is the Life Annuity with Payments for a Period Certain Annuity Payout Option with a five year period certain. (Qualified Contract means a contract issued to qualify under Sections 401, 403 or 408 of the Internal Revenue Code.) The default annuitization option for non-Qualified Contracts is the Life Annuity with Payments for a Period Certain Annuity Payout Option with a ten year period certain. In general, we use Contract Value to calculate fixed dollar amount Annuity Payouts, variable dollar amount Annuity Payouts, or a combination of fixed or variable dollar amount Annuity Payouts, depending on the investment allocation of your Contract in effect on the Deferred Annuity Commencement Date;
If you elect the Deferral Option, premium taxes, if not previously deducted, will be deducted on your Deferred Annuity Commencement Date and not on your Annuity Commencement Date; and
If you choose the Deferral Option, full and partial Surrenders may be made up to the Deferred Annuity Commencement Date.
The ability to elect the Deferral Option may not be available in every State. The Deferral Option may be cancelled or withdrawn at any time by us without prior notification from us, except that we will not withdraw the option for any Contract Owner who has been offered the option at the beginning of the Election Period preceding the Annuity Commencement Date.
If you elect the Deferral Option and if your Spouse continues the Contract after the Annuity Commencement Date, the terms of the Deferral Option will remain in force and will supersede any conflicting terms set forth above and the Deferred Annuity Commencement Date will be adjusted to the new Annuitant’s, if any, 100th birthday.
If you elect the Deferral Option and if the Contingent Annuitant continues the Contract after the Annuity Commencement Date, the terms of the Deferral Option will remain in force and will supersede any conflicting terms set forth above and the Deferred Annuity Commencement Date will be adjusted to the new Annuitant’s 100th birthday.
Once elected, in the event the Contingent Annuitant becomes the Annuitant and in the absence of a written election to the contrary, the Deferred Annuity Commencement Date will be the fifteenth day of the month coincident with or next following the Contingent Annuitant’s 100th birthday.
Please note that if you elect the Deferral Option, then, after your Annuity Commencement Date, the Contract terms described above will be modified by this Supplement. All inconsistent terms set forth in the Prospectus will not apply after your Annuity Commencement Date.
We encourage you to review the Deferral Option with your tax adviser regarding the tax consequences of electing the Deferral Option.
This Deferral Option will not be appropriate for all Contract Owners, and it may not be in your best interest to elect the Deferral Option.
Other Considerations
We cannot recommend whether or not the Deferral Option is the right choice for you. Please discuss the merits of the Deferral Option with your Financial Intermediary and tax adviser to be sure that the Deferral Option is suitable for you based on your particular circumstances;
It is possible that the IRS could characterize the deferral of your annuity commencement date as a deemed exchange of your contract. Therefore, if your contract was issued prior to 1989, you should discuss the possible loss of any grandfathered rights related to your current

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contract with your tax adviser. In addition, if you elect the Deferral Option for more than one contract in the same year and the IRS were to characterize the deferral of your annuity commencement dates as a deemed exchange of your contracts, your contracts may be aggregated for the purposes of determining the taxability of any future distributions;
It is possible that the selection of an Annuity Commencement Date at certain advanced ages could result in the Contract not being treated as an annuity for tax purposes; therefore, you should consult with your tax adviser;
Whether the advantages of deferring the Annuity Commencement Date outweigh any other option available to you at that time including liquidation or choosing an Annuity Payout Option;
Whether the advantages of deferring the Annuity Commencement Date outweigh the disadvantages, including the loss of all Death Benefits in excess of Contract Value, the loss of all living benefits and the constraints on investments into the Fixed Accumulation Feature;
Whether you have other assets to meet your future income needs;
Whether you will change your mind. Once you have elected the Deferral Option, you will not have the ability to reinstate The Hartford’s Principal First or The Hartford’s Principal First Preferred rider or reverse any other changes made to your Contract on the Annuity Commencement Date;
In your evaluation of the Deferral Option, you should consult with your Financial Intermediary and tax adviser and potentially any Beneficiaries named in the Contract;
The Deferral Option may not be available in all states, through all Financial Intermediaries or for all contracts;
Financial Intermediaries do not receive additional compensation if you choose the Deferral Option, but continue to receive existing compensation throughout the deferral period;
If you choose an Annuity Payout Option, you cannot later elect the Deferral Option; and
If you elect the Deferral Option, you may choose any then available Annuity Payout Options at or before the Deferred Annuity Commencement Date; however, you cannot elect to defer your Deferred Annuity Commencement Date further. On your Deferred Annuity Commencement Date if you have a Qualified Contract, the default Annuity Payout Option is a Life Annuity with Payments for a Period Certain Payout Option with period certain of five years. If you have a non-Qualified Contract, the default Annuity Payout Option is the Life Annuity with Payments for a Period Certain Payout Option with a ten year period certain. In general, we use Contract Value to calculate fixed dollar amount Annuity Payouts, variable dollar amount Annuity Payouts, or a combination of fixed or variable dollar amount Annuity Payouts, depending on the investment allocation of your Contract in effect on the Deferred Annuity Commencement Date.

EXAMPLE
This example does not represent your actual Contract. It uses hypothetical amounts, not your actual Contract amounts.
This example is intended to help you compare the total and taxable amounts of annuity payments if you annuitize your contract on its Annuity Commencement Date to the total and taxable amounts of annuity payments if you elect the Deferral Option and either die at age 100 under circumstances which trigger payment of a Death Benefit or annuitize your contract on the Annuitant’s 100th birthday.
Because the amounts used below are assumptions and do not represent your actual Contract amounts, this example should not be considered to be a representation of the actual total or taxable amounts nor a representation of the tax consequences of receipt of those total or taxable amounts. The consequences of receipt of those total and taxable amounts depend on many factors outside the scope of this example.
This example assumes that on the Annuity Commencement Date:
The annuitant is age 90.
The Contract Value is $250,000.
The investment (tax basis) in the Contract is $175,000.

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The Contract is non-Qualified.
The amounts shown in this example will vary depending on the annuitization option chosen and whether variable payouts, fixed payouts or a combination of variable and fixed payouts are elected. In addition, the exclusion ratio depends on factors including the investment into the Contract, the Contract Value and the length of time that annuity payments will continue. For Payout Options which include a Life Annuity, the exclusion ratio may also depend on the annuitant’s life expectancy at the time annuity payments begin.
As you consider this example, please note that to make a direct comparison between the total and taxable amounts received through annuitization at the Annuity Commencement Date (age 90) and received at the Deferred Annuity Commencement Date, you must calculate the results of investment of the amount received at age 90 for the ten-year period until age 100. Factors to consider in this calculation include:

The assumed net rate of return for this period;
The amount payable in taxes related to this amount; and
Potential changes in laws including tax laws that may affect investment and taxes.
Total and taxable amounts if the Contract is annuitized on the Annuity Commencement Date:
To calculate the total and taxable amounts, this example assumes:
The election of the ten year Payments for a Period Certain, Fixed Dollar Amount Annuity Payout Option.
The annual payment is assumed to equal to $25,660. This amount is calculated based on the assumed contract value of $250,000 and a crediting rate of 0.56%. The crediting rate is set by us periodically using current interest rates and other factors.
After 10 years, total payments of $256,600 ($25,660 per year times 10 years) will be received.
Based on these assumptions:
The exclusion ratio is 0.682 ($175,000 divided by $256,600). The exclusion ratio represents the portion of your payments that are excludable from federal income tax.
The annual excludable amount is $17,500 ($25,660 times 0.682). This represents the portion of your annual payment that is excludable from federal income tax. The annual taxable amount is the remainder, $8,160 ($25,660 minus $17,500).
After 10 years, the total taxable amount is $81,600 ($8,160 per year times 10 years).
Total and taxable amounts if the Annuity Commencement Date Deferral Option is elected and the Annuity Commencement Date is deferred to age 100 and the Contract has positive net returns through age 100:
This example assumes:
The Contract has a 4% annual growth, net of fees, compounded annually, for the next ten years.
Based on this assumption, the Contract Value at age 100 is $370,061 ($250,000 times (1+ .04) compounded each year for ten years).
If a Death Benefit is payable at age 100:
The beneficiary receives the $370,061 Contract Value as a Death Benefit in one lump sum.
$195,061 (the total amount minus the investment in the Contract, or $370,061 minus $175,000) of the amount is taxable to the beneficiary.
If annuitization is elected at age 100 using the ten year Payments for a Period Certain, Fixed Dollar Amount Annuity Payout Option:
This example assumes:

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The annual payment is assumed to equal to $37,960. This amount is calculated based on the assumed contract value of $370,061 and a crediting rate of 0.56%. The crediting rate is set by us periodically using current interest rates and other factors.
After 10 years, total payments of $379,600 ($37,960 per year times 10 years) will be received.
Based on this assumption:
The exclusion ratio will be 0.461 ($175,000 divided by $379,600). The exclusion ratio represents the portion of your payments that are excludable from federal income tax.
The annual excludable amount is $17,500 ($37,960 times 0.461). This represents the portion of your annual payment that is excludable from federal income tax.
The annual taxable amount is the remainder, $20,460 ($37,960 minus $17,500).
After 10 years, the total taxable amount is $204,600 ($20,460 per year times 10 years).
Total and taxable amounts if the Annuity Commencement Date Deferral Option is elected, the Annuity Commencement Date is deferred to age 100 and the Contract has negative net returns through age 100:
This example assumes:
The Contract has a -2% annual growth, net of fees, compounded annually, for the next ten years.
Based on this assumption, the Contract Value at age 100 is $204,268 ($250,000 times (1 -.02) compounded each year for ten years).
If a Death Benefit is payable at age 100:
The beneficiary receives the $204,268 Contract Value as a Death Benefit in one lump sum.
$29,268 (the total amount minus the investment in the Contract, or $204,268 minus $175,000) of the amount is taxable to the beneficiary.
If annuitization is elected at age 100 using the ten year Payments for a Period Certain, Fixed Dollar Amount Annuity Payout Option:
This example assumes:
The annual payment is assumed to equal to $20,983. This amount is calculated based on the assumed contract value of $204,268 and a crediting rate of 0.56%. The crediting rate is set by us periodically using current interest rates and other factors.
After 10 years, total payments of $209,830 ($20,983 per year times 10 years) will be received.
Based on this assumption:
The exclusion ratio will be 0.834 ($175,000 divided by $209,830). The exclusion ratio represents the portion of your payments that are excludable from federal income tax.
The annual excludable amount is $17,500 ($20,983 times 0.834). This represents the portion of your annual payment that is excludable from federal income tax.
The annual taxable amount is the remainder or $3,483 ($20,983 minus $17,500).
After 10 years, total taxable amount is $34,830 ($3,483 per year times 10 years).

This Supplement should be retained with your Prospectus for future reference.
HV-7681

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PART C
OTHER INFORMATION
ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS
(a)
 
All financial statements are included in Part A and Part B of the Registration Statement.
(b)
(1)
Resolution of the Board of Directors of Hartford Life Insurance Company ("Hartford") authorizing the establishment of the Separate Account.(1)
 
(2)
Not applicable.
 
(3)
(a) Amended and Restated Principal Underwriter Agreement.(2)
 
(3)
(b) Form of Dealer Agreement.(3)
 
(4)
Form of Individual Flexible Premium Variable Annuity Contract.(4)
 
(4)
(b) MAV / MAV Plus(5)
 
(4)
(c) Principal First(5)
 
(4)
(d) Principal First Preferred(5)
 
(4)
(e) Lifetime Income Foundation Rider (Single)(5)
 
(4)
(f) Lifetime Income Foundation Rider (Joint Life / Single)(5)
 
(4)
(g) Lifetime Income Builder II Rider (Single)(5)
 
(4)
(h) Lifetime Income Builder II Rider (Joint Life / Spousal)(5)
 
(4)
(i) Unified Benefit Rider
 
(4)
(j) The Hartford's Lifetime Income Builder Selects Rider (Single)(5)
 
(4)
(k) The Hartford's Lifetime Income Builder Selects Rider (Joint Life / Spousal)(5)
 
(4)
(l) The Hartford's Lifetime Income Builder Portfolios Rider (Single)(5)
 
(4)
(m) The Hartford's Lifetime Income Builder Portfolios Rider (Joint Life / Spousal)(5)
 
(4)
(n) Amendatory Rider -- Voluntary Program to Surrender Contract and In Force Riders And Receive Enhanced Surrender Value(7)
 
(4)
(o) Amendatory Rider - Annuity Commencement Date Deferral Option
 
(5)
Form of Application.(4)
 
(6)
(a) Articles of Incorporation of Hartford.(2)
 
(6)
(b) Bylaws of Hartford.(2)
 
(7)
Reinsurance Agreements and Amendments
 
(7)
(a) Transamerica Financial Life Insurance Company(5)
 
(7)
(b) ACE Tempest Life Reinsurance Ltd. (October 1, 2002)(5)
 
(7)
(c) ACE Tempest Life Reinsurance Ltd. (June 2, 2003)(5)
 
(7)
(d) ACE Tempest Life Reinsurance Ltd. (April 1, 2004)(5)
 
(7)
(e) Swiss Re Life & Health America, Inc. (HL)(5)
 
(7)
(f) Swiss Re Life & Health America, Inc. (HLA)(5)
 
(8)
Fund Participation Agreements and Amendments
 
(8)
(a) AIM Variable Insurance Funds(5)
 
(8)
(b) American Funds Insurance Series(5)
 
(8)
(c) Franklin Templeton Variable Insurance Products Trust(5)
 
(8)
(d) Hartford Series Fund, Inc.(5)
 
(8)
(e) MFS Variable Insurance Trust(5)
 
(8)
(b) Guarantee Agreement, between Hartford Fire Insurance Company and Hartford Life and Accident Insurance Company and its wholly owned subsidiary, Hartford Life Insurance Company, dated as of January 1, 1990.(6)
 
(8)
(c) Guarantee between Hartford Life Insurance Company and ITT Hartford International Life Reassurance Corporation, dated August 29, 1994 and effective as of May 1, 1993.(6)
 
(8)
(d) Guarantee Agreement, between Hartford Life Insurance Company and ITT Comprehensive Employee Benefit Service Company, its wholly owned subsidiary, dated as of April 1, 1997.(6)
 
(8)
(e) Guarantee Agreement, between Hartford Life Insurance Company and ITT Hartford Life and Annuity Insurance Company, dated as of May 23, 1997.(6)
 
(8)
(f) Capital Maintenance Agreement by and between Hartford Life Insurance Company and Hartford Life, Inc. dated March 12, 2001.(6)
 
(9)
Opinion and Consent of Lisa Proch, Assistant General Counsel.
 
(10)
Consent of Deloitte & Touche LLP.
 
(11)
No financial statements are omitted.
 
(12)
Not applicable.
 
(99)
Copy of Power of Attorney.








(1) Incorporated by reference to Post-Effective Amendment No. 1, to the Registration Statement File No. 333-70153, dated April 13, 1999.

(2) Incorporated by reference to Post-Effective Amendment No. 3, to the Registration Statement, File No. 333-148564, filed on February 9, 2009.

(3) Incorporated by reference to Post-Effective Amendment No. 3, to the Registration Statement File No. 33-73570, dated April 1, 1996.

(4) Incorporated by reference to Pre-Effective Amendment No. 1, to the Registration Statement File No. 333-101944, filed on April 7, 2003.

(5) Incorporated by reference to Post-Effective Amendment No. 20, to the Registration Statement, File No. 333-101948, filed on November 1, 2012.

(6) Incorporated by reference to Post-Effective Amendment No. 10, to the Registration Statement on Form N-4, File No. 333-148564, filed on May 3, 2010.

(7) Incorporated by reference to Post-Effective Amendment No. 21, to the Registration Statement on Form N-4, File No. 333-101948, filed on April 23, 2012.






ITEM 25 DIRECTORS AND OFFICERS OF THE DEPOSITOR

NAME
POSITION
Thomas E. Bartell
Vice President
Ellen T. Below
Vice President
John B. Brady
Actuary, Vice President
Kathleen M. Bromage
Senior Vice President
Michael R. Chesman
Senior Vice President, Director of Taxes
Robert A. Cornell
Actuary, Vice President
Christopher S. Conner
Chief Compliance Officer of Separate Accounts
Michael R. Hazel
Vice President, Controller
Donna R. Jarvis
Actuary, Vice President
Brion S. Johnson
President, Chairman of the Board, Director*
Aidan Kidney
Senior Vice President
Diane Krajewski
Vice President
David R. Kryzanski
Vice President
Lisa S. Levin
Corporate Secretary
Craig D. Morrow
Appointed Actuary, Vice President
Matthew J. Poznar
Senior Vice President, Director*
Robert W. Paiano
Treasurer, Senior Vice President, Director*
Lisa M. Proch
Vice President and Chief Compliance Officer of Talcott Resolution
David G. Robinson
Executive Vice President, General Counsel
Peter F. Sannizzaro
Senior Vice President, Chief Accounting Officer, Chief Financial Officer
Robert R. Siracusa
Vice President




















Unless otherwise indicated, the principal business address of each of the above individuals is One Hartford Plaza, Hartford, CT 06155.

* Denotes Board of Directors.






ITEM 26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR REGISTRANT.

Incorporated by reference to Post-Effective Amendment No. 17 to the Registration Statement File No. 333-148570, filed on November 15, 2016.

ITEM 27. NUMBER OF CONTRACT OWNERS

As of August 31, 2016, there were 43,530 Contract Owners.

ITEM 28. INDEMNIFICATION

Section 33-776 of the Connecticut General Statutes states that: "a corporation may provide indemnification of, or advance expenses to, a director, officer, employee or agent only as permitted by sections 33-770 to 33-779, inclusive."

Provision is made that the Corporation, to the fullest extent permissible by applicable law as then in effect, shall indemnify any individual who is a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative, arbitrative or investigative, and whether formal or informal (each, a "Proceeding") because such individual is or was (i) a Director, or (ii) an officer or employee of the Corporation (for purposes of the by laws, each an "Officer"), against obligations to pay judgments, settlements, penalties, fines or reasonable expenses (including counsel fees) incurred in a Proceeding if such Director or Officer: (l)(A) conducted him or herself in good faith; (B) reasonably believed (i) in the case of conduct in such person's official capacity, which shall include service at the request of the Corporation as a director, officer or fiduciary of a Covered Entity (as defined below), that his or her conduct was in the best interests of the Corporation; and (ii) in all other cases, that his or her conduct was at least not opposed to the best interests of the Corporation; and (C) in the case of any criminal proceeding, such person had no reasonable cause to believe his or her conduct was unlawful; or (2) engaged in conduct for which broader indemnification has been made permissible or obligatory under a provision of the Corporation's Certificate, in each case, as determined in accordance with the procedures set forth in the by laws. For purposes of the by laws, a "Covered Entity" shall mean another corporation, partnership, joint venture, trust or other enterprise (including, without limitation, any employee benefit plan) in respect of which such person is serving at the request of the Corporation as a director, officer or fiduciary.

Insofar as indemnification for liability arising under the Securities Act of 1933 (the "Act") may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

ITEM 29. PRINCIPAL UNDERWRITERS

(a) HSD acts as principal underwriter for the following investment companies:

Hartford Life Insurance Company - Separate Account One
Hartford Life Insurance Company - Separate Account Two
Hartford Life Insurance Company - Separate Account Two (DC Variable Account I)
Hartford Life Insurance Company - Separate Account Two (DC Variable Account II)
Hartford Life Insurance Company - Separate Account Two (QP Variable Account)
Hartford Life Insurance Company - Separate Account Two (Variable Account "A")
Hartford Life Insurance Company - Separate Account Two (NQ Variable Account)
Hartford Life Insurance Company - Separate Account Ten
Hartford Life Insurance Company - Separate Account Three
Hartford Life Insurance Company - Separate Account Five
Hartford Life Insurance Company - Separate Account Seven
Hartford Life Insurance Company - Separate Account Eleven
Hartford Life Insurance Company - Separate Account Twelve
Hartford Life and Annuity Insurance Company - Separate Account One
Hartford Life and Annuity Insurance Company - Separate Account Ten
Hartford Life and Annuity Insurance Company - Separate Account Three
Hartford Life and Annuity Insurance Company - Separate Account Five
Hartford Life and Annuity Insurance Company - Separate Account Six
Hartford Life and Annuity Insurance Company - Separate Account Seven
Union Security Insurance Company - Variable Account C
Union Security Insurance Company - Variable Account D
Union Security Life Insurance Company - Separate Account A







(b) Directors and Officers of HSD

Name
Positions and Offices with Underwriter
Diana Benken
Chief Financial Officer, Controller/FINOP
Christopher S. Conner
AML Compliance Officer, Chief Compliance Officer, Privacy Officer, Secretary
Christopher J. Dagnault (1)
President, Chief Executive Officer, Director
Aidan Kidney
Senior Vice President, Chairman of the Board, Director
Kathleen E. Jorens
Vice President, Assistant Treasurer
Robert W. Paiano
Senior Vice President, Treasurer
Michael Chesman
Senior Vice President, Director of Taxes
Andrew Diaz-Matos
Vice President
Donald C. Hunt
Vice President
Mark M. Sosha
Vice President
Diane Krajewski
Director





Unless otherwise indicated, the principal business address of each of the above individuals is One Hartford Plaza, Hartford, CT 06155.

(1) Address: 500 Bielenberg Drive. Woodbury, MN 55125

ITEM 30. LOCATION OF ACCOUNTS AND RECORDS

All of the accounts, books, records or other documents required to be kept by Section 31(a) of the Investment Company Act of 1940 and rules thereunder are maintained by Hartford at One Hartford Plaza, Hartford, CT 06155.

ITEM 31. MANAGEMENT SERVICES

All management contracts are discussed in Part A and Part B of this Registration Statement.

ITEM 32. UNDERTAKINGS

(a)
The Registrant hereby undertakes to file a post-effective amendment to this Registration Statement as frequently as is necessary to ensure that the audited financial statements in the Registration Statement are never more than 16 months old so long as payments under the variable annuity Contracts may be accepted.

(b)
The Registrant hereby undertakes to include either (1) as part of any application to purchase a Contract offered by the Prospectus, a space that an applicant can check to request a Statement of Additional Information, or (2) a post card or similar written communication affixed to or included in the Prospectus that the applicant can remove to send for a Statement of Additional Information.

(c)
The Registrant hereby undertakes to deliver any Statement of Additional Information and any financial statements required to be made available under this Form promptly upon written or oral request.

(d)
Hartford hereby represents that the aggregate fees and charges under the Contract are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by Hartford.

The Registrant is relying on the no-action letter issued by the Division of Investment Management to American Counsel of Life Insurance, Ref. No. IP-6-88, November 28, 1988. Registrant has complied with conditions one through four of the no-action letter.






SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets all the requirements for effectiveness of this Registration Statement pursuant to Rule 485(b) under the Securities Act of 1933 and has duly caused this Registration Statement to be signed on its behalf, in the City of Hartford, and State of Connecticut on November 15, 2016.

HARTFORD LIFE INSURANCE COMPANY
SEPARATE ACCOUNT SEVEN (Registrant)

By:
Brion S. Johnson*
*By:
/s/ Lisa Proch

Brion S. Johnson

Lisa Proch

President, Chief Executive Officer,

Attorney-in-Fact

Chairman of the Board




HARTFORD LIFE INSURANCE COMPANY
(Depositor)

By:
Brion S. Johnson*

Brion S. Johnson

President, Chief Executive Officer,

Chairman of the Board


Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed by the following persons and in the capacities and on the dates indicated.

Brion S. Johnson, President, Chief Executive Officer,


Chairman of the Board, Director*


Matthew J. Poznar, Senior Vice President, Director*
*By:
/s/ Lisa Proch
Robert W. Paiano, Senior Vice President, Treasurer, Director*

Lisa Proch
Peter F. Sannizzaro, Senior Vice President, Chief Accounting Officer,

Attorney-in-Fact
Chief Financial Officer
Date:
November 15, 2016




 
EXHIBIT INDEX
(4)
Amendatory Rider - Annuity Commencement Date Deferral Option
(9)
Opinion and Consent of Lisa Proch, Assistant General Counsel
(10)
Consents of Deloitte & Touche LLP
(99)
Power of Attorney