RLI CORP — Director's Dealing 2011

May 25, 2011

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: RLI CORP (RLI)
CIK: 0000084246
Period of Report: 2011-05-23

Reporting Person: Robison John E (Treasurer)

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2011-05-23	Stock Option	$32.34	M	1824	Disposed	2014-08-16	Common Stock (1824)	Direct
2011-05-23	Stock Option	$39.44	M	220	Disposed	2015-05-05	Common Stock (220)	Direct
2011-05-23	Stock Option	$37.54	M	3305	Disposed	2015-05-05	Common Stock (3305)	Direct
2011-05-23	Stock Option	$43.15	M	967	Disposed	2016-05-04	Common Stock (967)	Direct
2011-05-24	Stock Option	$43.15	M	3533	Disposed	2016-05-04	Common Stock (3533)	Direct
2011-05-24	Stock Option	$49.09	M	4000	Disposed	2017-05-03	Common Stock (4000)	Direct
2011-05-24	Stock Option	$43.00	M	3600	Disposed	2018-05-01	Common Stock (3600)	Direct
2011-05-24	Stock Option	$49.34	M	1500	Disposed	2018-05-06	Common Stock (1500)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	3508.5317	Direct
Common Stock	3081.0638	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Stock Option	$58.73	2019-05-05	Common Stock (0)	0	Direct
Stock Option	$39.90	2017-05-07	Common Stock (8500)	8500	Direct

Footnotes

F1: Stock Option grant price and number of incentive stock options granted adjusted to reflect $7 RLI extraordinary special dividend paid 12/29/10.

F2: Stock Option grant price adjusted to reflect $7 RLI extraordinary dividend paid 12/29/10.

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.

F4: Ownership reflects shares allocated to ESOP participant's account and dividend reinvestment.

F5: Option grant rescinded due to Mr. Robison's departure from the Company.