RLI CORP — Director's Dealing 2004

Sep 10, 2004

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: RLI CORP (RLI)
CIK: 0000084246
Period of Report: 2004-09-08

Reporting Person: MICHAEL JONATHAN E (Director, President)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2004-09-08	Common Stock	X	51510	$15.9063	Acquired	104061.7062	Direct
2004-09-08	Common Stock	M	20859	$39.28	Disposed	83202.7062	Direct
2004-09-08	Common Stock	F	10656	$39.28	Disposed	72546.7062	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2004-09-08	Option	$15.9063	X	51510	Disposed	2009-05-06	Common Stock (51510)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	58017.8927	Indirect
Common Stock	31024.6034	Indirect
Common Stock	13482.352	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Stock Option	$8.24	2005-05-11	Common Stock (5836)	5836	Direct
Stock Option	$9.15	2006-05-02	Common Stock (7250)	7250	Direct
Stock Option	$13	2007-05-01	Common Stock (21000)	21000	Direct
Stock Option	$15.7813	2010-05-04	Common Stock (56000)	56000	Direct
Stock Option	$20.05	2011-05-03	Common Stock (60000)	60000	Direct
Stock Option	$21.1	2008-05-07	Common Stock (38500)	38500	Direct
Stock Option	$29.335	2012-05-02	Common Stock (60000)	60000	Direct
Stock Option	$29.55	2013-05-01	Common Stock (60000)	60000	Direct
Stock Option	$35.08	2014-05-06	Common Stock (60000)	60000	Direct

Footnotes

F1: Ownership reflects dividend reinvestment.

F2: Ownership reflects shares allocated to ESOP participant's account and dividend reinvestment.

F4: Ownership reflects dividend reinvestment.

F3: Ownership reflects dividend reinvestment.