RLI CORP — Director's Dealing 2011

Feb 9, 2011

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: RLI CORP (RLI)
CIK: 0000084246
Period of Report: 2011-02-08

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

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2011-02-08	Common Stock	P	1410	$55.65	Acquired	3942.851	Direct
2011-02-08	Common Stock	P	35	$55.90	Acquired	3977.851	Direct
2011-02-09	Common Stock	P	1390	$55.94	Acquired	5367.851	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	2239.8139	Indirect
Common Stock	385.0229	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: 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.

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.