RLI CORP — Director's Dealing 2011

Jan 28, 2011

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: RLI CORP (RLI)
CIK: 0000084246
Period of Report: 2011-01-27

Reporting Person: MICHAEL JONATHAN E (Director, President)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2011-01-27	Common Stock	M	1	$17.75	Acquired	188649.0915	Direct
2011-01-27	Common Stock	M	60000	$22.55	Acquired	248649.0915	Direct
2011-01-27	Common Stock	F	37635	$54.38	Disposed	211014.0915	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2011-01-27	Stock Option	$17.75	M	1	Disposed	2011-05-03	Common Stock (1)	Direct
2011-01-27	Stock Option	$22.55	M	60000	Disposed	2013-05-01	Common Stock (60000)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	76928.8507	Indirect
Common Stock	42240.5567	Indirect
Common Stock	17045.2129	Indirect
Common Stock	7467	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Stock Option	$28.08	2014-05-06	Common Stock (60000)	60000	Direct
Stock Option	$37.54	2015-05-05	Common Stock (45000)	45000	Direct
Stock Option	$43.15	2016-05-04	Common Stock (10500)	10500	Direct
Stock Option	$40.44	2016-08-04	Common Stock (10500)	10500	Direct
Stock Option	$47.04	2016-11-03	Common Stock (10500)	10500	Direct
Stock Option	$49.21	2017-02-02	Common Stock (10500)	10500	Direct
Stock Option	$49.09	2017-05-03	Common Stock (10500)	10500	Direct
Stock Option	$49.67	2017-08-03	Common Stock (10500)	10500	Direct
Stock Option	$49.03	2017-11-02	Common Stock (10500)	10500	Direct
Stock Option	$48.41	2018-02-01	Common Stock (10500)	10500	Direct
Stock Option	$43.00	2018-05-01	Common Stock (10500)	10500	Direct
Stock Option	$47.36	2018-08-01	Common Stock (10500)	10500	Direct
Stock Option	$49.73	2018-11-03	Common Stock (10500)	10500	Direct
Stock Option	$49.89	2019-02-02	Common Stock (10500)	10500	Direct
Stock Option	$39.90	2017-05-07	Common Stock (9750)	9750	Direct
Stock Option	$43.49	2017-08-03	Common Stock (9750)	9750	Direct
Stock Option	$42.90	2017-11-02	Common Stock (9750)	9750	Direct
Stock Option	$44.62	2018-02-01	Common Stock (9750)	9750	Direct
Stock Option	$49.34	2018-05-06	Common Stock (8500)	8500	Direct
Stock Option	$49.20	2018-08-02	Common Stock (8500)	8500	Direct
Stock Option	$50.26	2018-11-01	Common Stock (8500)	8500	Direct

Footnotes

F1: Stock Option grant price adjusted to reflect $7 RLI extraordinary dividend paid 12/29/10.

F2: Ownership reflects dividend reinvestment.

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

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.