RLI CORP — Director's Dealing 2016

May 10, 2016

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: RLI CORP (RLI)
CIK: 0000084246
Period of Report: 2016-05-10

Reporting Person: Brown Thomas Lynn (VP, CFO)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2016-05-10	Common Stock	M	7200	$25.35	Acquired	27352.423	Direct
2016-05-10	Common Stock	M	12000	$29.42	Acquired	39352.423	Direct
2016-05-10	Common Stock	F	12725	$66.41	Disposed	26627.423	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2016-05-10	Stock Option	$25.35	M	7200	Disposed	2020-05-03	Common Stock (7200)	Direct
2016-05-10	Stock Option	$29.42	M	12000	Disposed	2021-05-02	Common Stock (12000)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	6555.6757	Indirect
Common Stock	2136.4229	Indirect

Footnotes

F1: Ownership reflects dividend reinvestment

F2: Balance reflects annual company contributions and dividend reinvestment.

F3: Stock option grant price adjusted to reflect $2.00 extraordinary dividend declared 11-12-15.

F4: Stock option grant price adjusted to reflect $3.00 extraordinary dividend declared 11/13/14.

F5: Stock option grant price adjusted to reflect $3.00 extraordinary dividend declared 11/14/13.

F6: Stock option grant price adjusted to reflect $5 extraordinary dividend declared 11/14/12.

F7: Stock option grant price and number of stock options adjusted to reflect 2-for-1 stock split on 01/15/14.

F8: 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.