SEC Form 4

FORM 4		UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934 or Section 30(h) of the Investment Company Act of 1940	OMB APPROVAL OMB Number: 3235-0287 Estimated average burden hours per response: 0.5
	Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

1. Name and Address of Reporting Person* STONE MICHAEL J (Last) (First) (Middle) 9025 N. LINDBERGH DRIVE (Street) PEORIA IL 61615 (City) (State) (Zip)	2. Issuer Name and Ticker or Trading Symbol RLI CORP [ RLI ]	5. Relationship of Reporting Person(s) to Issuer (Check all applicable) Director 10% Owner Officer (give title below) X Other (specify below) President RLI Insurance Compan
	3. Date of Earliest Transaction (Month/Day/Year) 11/04/2011
	4. If Amendment, Date of Original Filed (Month/Day/Year)	6. Individual or Joint/Group Filing (Check Applicable Line) X Form filed by One Reporting Person Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
			Code	V	Amount	(A) or (D)	Price
Common Stock	11/04/2011		J(2)	V	10,000	D	$70.73	107,443.0464	D(1)
Common Stock	11/04/2011		J(2)	V	10,000	A	$70.73	10,000	I	M.J. Stone Grantor Retained Annuity Trust (M4) dtd. 10/31/11
Common Stock	11/04/2011		J(3)	V	10,000	D	$70.73	97,443.0464	D(1)
Common Stock	11/04/2011		J(3)	V	10,000	A	$70.73	10,000	I	M.J. Stone Grantor Retained Annuity Trust (M5) dtd. 10/31/11
Common Stock	11/04/2011		J(4)	V	10,000	D	$70.73	87,443.0464	D(1)
Common Stock	11/04/2011		J(4)	V	10,000	A	$70.73	10,000	I	M.J. Stone Grantor Retained Annuuity Trust (M6) dtd. 10/31/11
Common Stock								18,183.9501	I	By Empl. Stock Ownership Plan(5)
Common Stock								21,213.9143	I	By Trust(1)
Common Stock								2,360.6933	I	M. J. Stone Grantor Retained Annuity Trust (M1)
Common Stock								11,534.982	I	M.J. Stone Grantor Retained Annuity Trust (M3)
Common Stock								4,456.1665	I	M.J. Stone Grantor Retained AnnuityTrust (M2)

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
				Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares
Stock Option	$49.09(7)							05/03/2008(6)	05/03/2017	Common Stock	31,500		31,500	D
Stock Option	$43(7)							05/01/2009(6)	05/01/2018	Common Stock	34,000		34,000	D
Stock Option	$39.9(7)							05/07/2010(6)	05/07/2017	Common Stock	19,200		19,200	D
Stock Option	$49.34(7)							05/06/2011(6)	05/06/2018	Common Stock	6,000		6,000	D
Stock Option	$49.2(7)							08/02/2011(6)	08/02/2018	Common Stock	6,000		6,000	D
Stock Option	$50.26(7)							11/01/2011(6)	11/01/2018	Common Stock	6,000		6,000	D
Stock Option	$55.28							02/01/2012(6)	02/01/2019	Common Stock	6,000		6,000	D
Stock Option	$58.73							05/05/2012(6)	05/05/2019	Common Stock	8,000		8,000	D
Stock Option	$62.62							08/01/2012(6)	08/01/2019	Common Stock	8,000		8,000	D
Stock Option	$67.59							11/01/2012(6)	11/01/2019	Common Stock	8,000		8,000	D

Explanation of Responses:

1. Ownership reflects dividend reinvestment.

2. Shares transferred from M.J. Stone to the M.J. Stone Grantor Retained Annuity Trust (M4) dtd. 10/31/11

3. Shares transferred from M.J. Stone to the M.J. Stone Grantor Retained Annuity Trust (M5) dtd. 10/31/11.

4. Shares transferred from M.J. Stone to the M.J. Stone Grantor Retained Annuity Trust (M6) dtd. 10/31/11.

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

6. 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.

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

	/s/ Michael J. Stone	11/07/2011
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
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