RLI CORP — Director's Dealing 2009

Jan 30, 2009

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: RLI CORP (RLI)
CIK: 0000084246
Period of Report: 2009-01-12

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

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2009-01-12	Common Stock	G	500	$56.37	Disposed	105531.8142	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	13958.164	Indirect
Common Stock	17645.552	Indirect
Common Stock	5000	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Stock Option	$35.08	2014-05-06	Common Stock (40000)	40000	Direct
Stock Option	$44.54	2015-05-05	Common Stock (30000)	30000	Direct
Stock Option	$50.15	2016-05-04	Common Stock (27500)	27500	Direct
Stock Option	$56.09	2017-05-03	Common Stock (31500)	31500	Direct
Stock Option	$50.00	2018-05-01	Common Stock (34000)	34000	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.