Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
MICHAEL JONATHAN E
   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
(Last)
(First)
(Middle)
9025 N. LINDBERGH DRIVE		 3. Date of Earliest Transaction (Month/Day/Year)
02/15/2011
(Street)

PEORIA, IL 61615		 4. If Amendment, Date 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
(City)
(State)
(Zip)
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 02/15/2011   J(2)   318.775 A $ 56.47 211,332.8665 D (1)  
Common Stock               76,928.8507 I By Empl. Stock Ownership Plan (3)
Common Stock               42,240.5567 I By Key Employee Benefit Plan (1)
Common Stock               17,045.2129 I By Trust (1)
Common Stock               7,467 I J.E. Michael 2009 Grantor Retained Annuity Trust Dtd 02/24/09

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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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 Underlying Securities
(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 of Derivative Security: 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 $ 28.08 (4)             05/06/2005 05/06/2014 Common Stock 60,000   60,000 D  
Stock Option $ 37.54 (4)             05/05/2006 05/05/2015 Common Stock 45,000   45,000 D  
Stock Option $ 43.15 (4)             05/04/2007(5) 05/04/2016 Common Stock 10,500   10,500 D  
Stock Option $ 40.44 (4)             08/04/2007(5) 08/04/2016 Common Stock 10,500   10,500 D  
Stock Option $ 47.04 (4)             11/03/2007(5) 11/03/2016 Common Stock 10,500   10,500 D  
Stock Option $ 49.21 (4)             02/02/2008(5) 02/02/2017 Common Stock 10,500   10,500 D  
Stock Option $ 49.09 (4)             05/03/2008(5) 05/03/2017 Common Stock 10,500   10,500 D  
Stock Option $ 49.67 (4)             08/03/2008(5) 08/03/2017 Common Stock 10,500   10,500 D  
Stock Option $ 49.03 (4)             11/02/2008(5) 11/02/2017 Common Stock 10,500   10,500 D  
Stock Option $ 48.41 (4)             02/01/2009(5) 02/01/2018 Common Stock 10,500   10,500 D  
Stock Option $ 43 (4)             05/01/2009(5) 05/01/2018 Common Stock 10,500   10,500 D  
Stock Option $ 47.36 (4)             08/01/2009(5) 08/01/2018 Common Stock 10,500   10,500 D  
Stock Option $ 49.73 (4)             11/03/2009(5) 11/03/2018 Common Stock 10,500   10,500 D  
Stock Option $ 49.89 (4)             02/02/2010(5) 02/02/2019 Common Stock 10,500   10,500 D  
Stock Option $ 39.9 (4)             05/07/2010(5) 05/07/2017 Common Stock 9,750   9,750 D  
Stock Option $ 43.49 (4)             08/03/2010(5) 08/03/2017 Common Stock 9,750   9,750 D  
Stock Option $ 42.9 (4)             11/02/2010(5) 11/02/2017 Common Stock 9,750   9,750 D  
Stock Option $ 44.62 (4)             02/01/2011(5) 02/01/2018 Common Stock 9,750   9,750 D  
Stock Option $ 49.34 (4)             05/06/2011(5) 05/06/2018 Common Stock 8,500   8,500 D  
Stock Option $ 49.2 (4)             08/02/2011(5) 08/02/2018 Common Stock 8,500   8,500 D  
Stock Option $ 50.26 (4)             11/01/2011(5) 11/01/2018 Common Stock 8,500   8,500 D  
Stock Option $ 55.28             02/01/2012(5) 02/01/2019 Common Stock 8,500   8,500 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
MICHAEL JONATHAN E
9025 N. LINDBERGH DRIVE
PEORIA, IL 61615		   X     President  

Signatures

 /s/ Jonathan E. Michael   02/16/2011
**Signature of Reporting Person Date

Explanation of Responses:

* 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).
(1) Ownership reflects dividend reinvestment.
(2) Shares purchased through payroll deduction feature of the RLI Dividend Reinvestment Plan.
(3) Ownership reflects shares allocated to ESOP participant's account and dividend reinvestment.
(4) Stock Option grant price adjusted to reflect $7 RLI extraordinary dividend paid 12/29/10.
(5) 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.

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