RLI CORP — Director's Dealing 2011

Jan 11, 2011

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: RLI CORP (RLI)
CIK: 0000084246
Period of Report: 2010-12-30

Reporting Person: STONE MICHAEL J (President RLI Insurance Compan)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2010-12-30	Common Stock	G	400	$52.73	Disposed	94074.0464	Direct
2011-01-04	Common Stock	G	400	$52.45	Disposed	93674.0464	Direct
2011-01-10	Common Stock	G	200	$52.68	Disposed	93474.0464	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	17544.6985	Indirect
Common Stock	20900.8331	Indirect
Common Stock	4111.7774	Indirect
Common Stock	11364.4	Indirect
Common Stock	5768.06	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Stock Option	$28.08	2014-05-06	Common Stock (20000)	20000	Direct
Stock Option	$37.54	2015-05-05	Common Stock (30000)	30000	Direct
Stock Option	$43.15	2016-05-04	Common Stock (27500)	27500	Direct
Stock Option	$49.09	2017-05-03	Common Stock (31500)	31500	Direct
Stock Option	$43.00	2018-05-01	Common Stock (34000)	34000	Direct
Stock Option	$39.90	2017-05-07	Common Stock (32000)	32000	Direct
Stock Option	$49.34	2018-05-06	Common Stock (6000)	6000	Direct
Stock Option	$49.20	2018-08-02	Common Stock (6000)	6000	Direct
Stock Option	$50.26	2018-11-01	Common Stock (6000)	6000	Direct

Footnotes

F1: Ownership reflects dividend reinvestment.

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.