RLI CORP — Director's Dealing 2011

Feb 22, 2011

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: RLI CORP (RLI)
CIK: 0000084246
Period of Report: 2011-02-18

Reporting Person: Robison John E (Treasurer)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2011-02-18	Common Stock	M	1000	$32.34	Acquired	3498.8217	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2011-02-18	Stock Option	$32.34	M	1000	Disposed	2014-08-16	Common Stock (1000)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	2714.1785	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Stock Option	$37.54	2015-05-05	Common Stock (3305)	3305	Direct
Stock Option	$39.44	2015-05-05	Common Stock (220)	220	Direct
Stock Option	$43.15	2016-05-04	Common Stock (4500)	4500	Direct
Stock Option	$49.09	2017-05-03	Common Stock (5000)	5000	Direct
Stock Option	$43.00	2018-05-01	Common Stock (6000)	6000	Direct
Stock Option	$39.90	2017-05-07	Common Stock (8500)	8500	Direct
Stock Option	$49.34	2018-05-06	Common Stock (7500)	7500	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: Ownership reflects shares allocated to ESOP participant's account and dividend reinvestment.

F3: Stock Option grant price adjusted to reflect $7 RLI extraordinary dividend paid 12/29/10.

F4: 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.