RLI CORP — Director's Dealing 2003

Dec 16, 2003

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: RLI CORP (RLI)
CIK: 0000084246
Period of Report: 2003-12-15

Reporting Person: STONE MICHAEL J (President RLI Insurance Compan)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2003-12-15	Common Stock	X	550	$9.4	Acquired	8185.175	Direct
2003-12-15	Common Stock	M	140	$37.08	Disposed	8045.175	Direct
2003-12-16	Common Stock	J	34	$36.32	Acquired	15121.1089	Indirect

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2003-12-15	Stock Option	$9.4	X	550	Disposed	2006-05-13	Common Stock (550)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	10140.757	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Stock Option	$13	2007-05-01	Common Stock (10500)	10500	Direct
Stock Option	$15.7813	2010-05-04	Common Stock (28000)	28000	Direct
Stock Option	$20.05	2011-05-03	Common Stock (30000)	30000	Direct
Stock Option	$21.1	2008-05-07	Common Stock (25000)	25000	Direct
Stock Option	$29.335	2012-05-02	Common Stock (48000)	48000	Direct
Stock Option	$29.55	2013-05-01	Common Stock (40000)	40000	Direct
Option	$15.9063	2009-05-06	Common Stock (30000)	30000	Direct

Footnotes

F1: Ownership reflects dividend reinvestment.

F2: The securities herein were allocated to my account pursuant to the RLI Corp. Executive Deferred Compensation Agreement.