RLI CORP — Director's Dealing 2004

Sep 16, 2004

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: RLI CORP (RLI)
CIK: 0000084246
Period of Report: 2004-09-15

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

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2004-09-15	Common Stock	J	52.921	$37.7919	Acquired	8473.0271	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	11072.4837	Indirect
Common Stock	16531.6681	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Option	$15.9063	2009-05-06	Common Stock (30000)	30000	Direct
Stock Option	$9.4	2006-05-13	Common Stock (16950)	16950	Direct
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
Stock Option	$35.08	2014-05-06	Common Stock (40000)	40000	Direct

Footnotes

F1: Shares purchased through payroll deduction feature of the RLI Dividend Reinvestment Plan.

F2: Ownership reflects dividend reinvestment.

F4: Ownership reflects dividend reinvestment.

F3: Ownership reflects shares allocated to ESOP participant's account and dividend reinvestment.