SEC FORM 4

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

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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^*

MICHAEL JONATHAN E

(Last)

(First)

(Middle)

9025 N. LINDBERGH DRIVE

(Street)

PEORIA

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)

X	Director	10% Owner
X	Officer (give title below)	Other (specify below)
	President

3. Date of Earliest Transaction (Month/Day/Year)
09/17/2012

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)
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	Amount	(A) or (D)	Price		6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
Common Stock	09/17/2012		J⁽¹⁾		30.225	A	$66.17	217,435.0768	D⁽²⁾
Common Stock								85,180.7073	I	By Empl. Stock Ownership Plan⁽³⁾
Common Stock								46,380.629	I	By Key Employee Benefit Plan⁽²⁾
Common Stock								18,715.8238	I	By Trust⁽²⁾
Common Stock								6,544.7675	I	J.E. Michael 2011 Grantor Retained Annuity Trust Dtd 08/02/11
Common Stock								7,708.9199	I	J.E. Michael 2012 Grantor Retained Annuity Trust Dtd 07/24/12
Common Stock								5,060	I	Michael Charitable Fund dtd 08/30/11

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)
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)	Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	8. Price of Derivative Security (Instr. 5)		10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
Stock Option	$32.54⁽⁴⁾⁽⁵⁾							05/05/2006	05/05/2015	Common Stock	45,000		45,000	D
Stock Option	$38.15⁽⁴⁾⁽⁵⁾							05/04/2007⁽⁶⁾	05/04/2016	Common Stock	10,500		10,500	D
Stock Option	$35.44⁽⁴⁾⁽⁵⁾							08/04/2007⁽⁶⁾	08/04/2016	Common Stock	10,500		10,500	D
Stock Option	$42.04⁽⁴⁾⁽⁵⁾							11/03/2007⁽⁶⁾	11/03/2016	Common Stock	10,500		10,500	D
Stock Option	$44.21⁽⁴⁾⁽⁵⁾							02/02/2008⁽⁶⁾	02/02/2017	Common Stock	10,500		10,500	D
Stock Option	$44.09⁽⁴⁾⁽⁵⁾							05/03/2008⁽⁶⁾	05/03/2017	Common Stock	10,500		10,500	D
Stock Option	$44.67⁽⁴⁾⁽⁵⁾							08/03/2008⁽⁶⁾	08/03/2017	Common Stock	10,500		10,500	D
Stock Option	$44.03⁽⁴⁾⁽⁵⁾							11/02/2008⁽⁶⁾	11/02/2017	Common Stock	10,500		10,500	D
Stock Option	$43.41⁽⁴⁾⁽⁵⁾							02/01/2009⁽⁶⁾	02/01/2018	Common Stock	10,500		10,500	D
Stock Option	$38⁽⁴⁾⁽⁵⁾							05/01/2009⁽⁶⁾	05/01/2018	Common Stock	10,500		10,500	D
Stock Option	$42.36⁽⁴⁾⁽⁵⁾							08/01/2009⁽⁶⁾	08/01/2018	Common Stock	10,500		10,500	D
Stock Option	$44.73⁽⁴⁾⁽⁵⁾							11/03/2009⁽⁶⁾	11/03/2018	Common Stock	10,500		10,500	D
Stock Option	$44.89⁽⁴⁾⁽⁵⁾							02/02/2010⁽⁶⁾	02/02/2019	Common Stock	10,500		10,500	D
Stock Option	$34.9⁽⁴⁾⁽⁵⁾							05/07/2010⁽⁶⁾	05/07/2017	Common Stock	9,750		9,750	D
Stock Option	$38.49⁽⁴⁾⁽⁵⁾							08/03/2010⁽⁶⁾	08/03/2017	Common Stock	9,750		9,750	D
Stock Option	$37.9⁽⁴⁾⁽⁵⁾							11/02/2010⁽⁶⁾	11/02/2017	Common Stock	9,750		9,750	D
Stock Option	$39.62⁽⁴⁾⁽⁵⁾							02/01/2011⁽⁶⁾	02/01/2018	Common Stock	9,750		9,750	D
Stock Option	$44.34⁽⁴⁾⁽⁵⁾							05/06/2011⁽⁶⁾	05/06/2018	Common Stock	8,500		8,500	D
Stock Option	$45.26⁽⁴⁾⁽⁵⁾							11/01/2011⁽⁶⁾	11/01/2018	Common Stock	8,500		8,500	D
Stock Option	$44.2⁽⁴⁾⁽⁵⁾							08/02/2011⁽⁶⁾	08/02/2018	Common Stock	8,500		8,500	D
Stock Option	$50.28⁽⁴⁾							02/01/2012⁽⁶⁾	02/01/2019	Common Stock	8,500		8,500	D
Stock Option	$53.73⁽⁴⁾							05/05/2012⁽⁶⁾	05/05/2019	Common Stock	15,000		15,000	D
Stock Option	$57.62⁽⁴⁾							08/01/2012⁽⁶⁾	08/01/2019	Common Stock	15,000		15,000	D
Stock Option	$62.59⁽⁴⁾							11/01/2012⁽⁶⁾	11/01/2019	Common Stock	15,000		15,000	D
Stock Option	$72.61							02/01/2013⁽⁶⁾	02/01/2020	Common Stock	15,000		15,000	D
Stock Option	$68.7							05/03/2013⁽⁶⁾	05/03/2020	Common Stock	15,000		15,000	D
Stock Option	$63.25							08/01/2013⁽⁶⁾	08/01/2020	Common Stock	15,000		15,000	D

Explanation of Responses:

1. Shares purchased through payroll deduction feature of the RLI Dividend Reinvestment Plan.

2. Ownership reflects dividend reinvestment.

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

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

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

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.

	/s/ Jonathan E. Michael	09/18/2012
	** 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).
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