RLI CORP — Director's Dealing 2011

Jan 4, 2011

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: RLI CORP (RLI)
CIK: 0000084246
Period of Report: 2011-01-03

Reporting Person: DONDANVILLE JOSEPH E (Senior Vice President/CFO)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2011-01-03	Common Stock	M	14000	$22.50	Acquired	105672.015	Direct
2011-01-03	Common Stock	F	8405	$53.06	Disposed	97267.015	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2011-01-03	Stock Option	$22.55	M	14000	Disposed	2013-05-01	Common Stock (14000)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	25523.5289	Indirect
Common Stock	9043.6131	Indirect
Common Stock	12276	Indirect
Common Stock	0	Indirect
Common Stock	0	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Stock Option	$28.08	2014-05-06	Common Stock (28000)	28000	Direct
Stock Option	$37.54	2015-05-05	Common Stock (21000)	21000	Direct
Stock Option	$43.15	2016-05-04	Common Stock (17500)	17500	Direct
Stock Option	$49.09	2017-05-03	Common Stock (18000)	18000	Direct
Stock Option	$43.00	2018-05-01	Common Stock (5000)	5000	Direct
Stock Option	$47.36	2018-08-01	Common Stock (5000)	5000	Direct
Stock Option	$49.73	2018-11-03	Common Stock (5000)	5000	Direct
Stock Option	$49.89	2019-02-02	Common Stock (5000)	5000	Direct
Stock Option	$39.90	2017-05-07	Common Stock (4700)	4700	Direct
Stock Option	$43.49	2017-08-03	Common Stock (4700)	4700	Direct
Stock Option	$42.90	2017-11-02	Common Stock (4700)	4700	Direct
Stock Option	$44.62	2018-02-01	Common Stock (4700)	4700	Direct
Stock Option	$49.34	2018-05-06	Common Stock (4000)	4000	Direct
Stock Option	$49.20	2018-08-02	Common Stock (4000)	4000	Direct
Stock Option	$50.26	2018-11-01	Common Stock (4000)	4000	Direct

Footnotes

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

F2: Ownership reflects 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.