RLI CORP — Director's Dealing 2011

May 6, 2011

SEC Form 4 — Statement of Changes in Beneficial Ownership

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

Reporting Person: Kennedy Daniel O (Vice President General Counsel)

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2011-05-05	Stock Option	$58.73	A	10000	Acquired	2019-05-05	Common Stock (10000)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	5472.028	Direct
Common Stock	2604.1932	Indirect
Common Stock	458.1084	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Stock Option	$45.30	2016-02-21	Common Stock (3088)	3088	Direct
Stock Option	$43.15	2016-05-04	Common Stock (8000)	8000	Direct
Stock Option	$46.31	2016-05-04	Common Stock (2159)	2159	Direct
Stock Option	$49.09	2017-05-03	Common Stock (9000)	9000	Direct
Stock Option	$43.00	2018-05-01	Common Stock (11000)	11000	Direct
Stock Option	$39.90	2017-05-07	Common Stock (10300)	10300	Direct
Stock Option	$49.34	2018-05-06	Common Stock (8800)	8800	Direct

Footnotes

F1: 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.

F2: Ownership reflects dividend reinvestment.

F3: Ownership reflects shares allocated to ESOP participant's account and dividend reinvestment.

F4: Stock Option grant price adjusted to reflect $7 RLI extraordinary dividend paid 12/29/10.

F5: Stock Option grant price and number of incentive stock options granted adjusted to reflect $7 RLI extraordinary special dividend paid 12/29/10.