RLI CORP — Director's Dealing 2008

Sep 22, 2008

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: RLI CORP (RLI)
CIK: 0000084246
Period of Report: 2008-09-19

Reporting Person: MICHAEL JONATHAN E (Director, President)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2008-09-19	Common Stock	M	59999	$20.05	Acquired	203561.9181	Direct
2008-09-19	Common Stock	F	34748	$65.75	Disposed	168813.9181	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2008-09-19	Stock Option	$20.05	M	59999	Disposed	2011-05-03	Common Stock (59999)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	14320.1725	Indirect
Common Stock	63729.15	Indirect
Common Stock	35487.2952	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Stock Option	$54.36	2018-08-01	Common Stock (10500)	10500	Direct
Stock Option	$56.03	2017-11-02	Common Stock (10500)	10500	Direct
Stock Option	$56.09	2017-05-03	Common Stock (10500)	10500	Direct
Stock Option	$54.04	2016-11-03	Common Stock (10500)	10500	Direct
Stock Option	$47.44	2016-08-04	Common Stock (10500)	10500	Direct
Stock Option	$29.335	2012-05-02	Common Stock (60000)	60000	Direct
Stock Option	$55.41	2018-02-01	Common Stock (10500)	10500	Direct
Stock Option	$44.54	2015-05-05	Common Stock (45000)	45000	Direct
Stock Option	$50.00	2018-05-01	Common Stock (10500)	10500	Direct
Stock Option	$56.21	2017-02-02	Common Stock (10500)	10500	Direct
Stock Option	$29.55	2013-05-01	Common Stock (60000)	60000	Direct
Stock Option	$15.7813	2010-05-04	Common Stock (6336)	6336	Direct
Stock Option	$50.15	2016-05-04	Common Stock (10500)	10500	Direct
Stock Option	$35.08	2014-05-06	Common Stock (60000)	60000	Direct
Stock Option	$15.9063	2009-05-06	Common Stock (6290)	6290	Direct
Stock Option	$56.67	2017-08-03	Common Stock (10500)	10500	Direct

Footnotes

F1: Ownership reflects dividend reinvestment.

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

F3: Pursuant to option schedule wherein 20% of the aggregate number of shares granted may be exercised commencing
one year from grant date and each year thereafter in 20% increments.