RLI CORP — Director's Dealing 2005

Nov 8, 2005

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: RLI CORP (RLI)
CIK: 0000084246
Period of Report: 2005-11-04

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

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2005-11-04	Common Stock	M	10000	$15.9063	Acquired	29259.6083	Direct
2005-11-04	Common Stock	F	5604	$55.68	Disposed	23655.6083	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2005-11-04	Option	$15.9063	M	10000	Disposed	2009-05-06	Common Stock (10000)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	11812.5501	Indirect
Common Stock	16818.6843	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Stock Option	$9.4	2006-05-13	Common Stock (8850)	8850	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 (13838)	13838	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
Stock Option	$44.54	2015-05-05	Common Stock (30000)	30000	Direct

Footnotes

F1: Ownership reflects dividend reinvestment.

F3: Ownership reflects dividend reinvestment.

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