RLI CORP — Director's Dealing 2012

May 4, 2012

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: RLI CORP (RLI)
CIK: 0000084246
Period of Report: 2012-05-03

Reporting Person: Kliethermes Craig W (VP, Actuarial RLI Insurance Co)

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2012-05-03	Stock Option	$68.70	A	18000	Acquired	2020-05-03	Common Stock (18000)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	5846.785	Direct
Common Stock	3176.8299	Indirect
Common Stock	5395.7702	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Stock Option	$44.09	2017-05-03	Common Stock (9000)	9000	Direct
Stock Option	$38.00	2018-05-01	Common Stock (11000)	11000	Direct
Stock Option	$34.90	2017-05-07	Common Stock (11300)	11300	Direct
Stock Option	$44.34	2018-05-06	Common Stock (13000)	13000	Direct
Stock Option	$53.73	2019-05-05	Common Stock (18000)	18000	Direct

Footnotes

F1: 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.

F2: Ownership reflects dividend reinvestment.

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

F4: Stock Option grant price adjusted to reflect $5 RLI extraordinary dividend declared 11/17/11.

F5: Stock Option grant price adjusted to reflect $7 RLI extraordinary dividend paid 12/29/10.