Sec Form 4 Filing - Bryant Todd Wayne @ RLI CORP - 2013-07-22

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 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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1. Name and Address of Reporting Person Bryant Todd Wayne 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 X __ Officer (give title below) _____ Other (specify below) Vice President, Controller (Last) (First) (Middle) 9025 N. LINDBERGH DRIVE 3. Date of Earliest Transaction (MM/DD/YY) 07/22/2013 (Street) PEORIA, IL61615 4. If Amendment, Date Original Filed (MM/DD/YY) 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 (MM/DD/YY) 2A. Deemed Execution Date, if any (MM/DD/YY) 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 07/22/2013 M( 1 ) 700 A $ 30.51 700 D Common Stock 07/22/2013 M( 1 ) 700 A $ 39.09 1,400 D Common Stock 07/22/2013 M( 1 ) 750 A $ 33 2,150 D Common Stock 07/22/2013 M( 1 ) 800 A $ 30.81 2,950 D Common Stock 07/22/2013 M( 1 ) 2,800 A $ 29.9 5,750 D Common Stock 07/22/2013 F( 1 ) 3,307 D $ 85.0032 2,443 D Common Stock 07/22/2013 S( 1 ) 2,443 D $ 85.0032 0 D Common Stock 8,714.6544 I Employee Stock Ownership Plan

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 (MM/DD/YY) 3A. Deemed Execution Date, if any (MM/DD/YY) 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 (MM/DD/YY) 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 $ 30.51 ( 2 ) ( 3 ) ( 4 ) 07/22/2013 M( 1 ) 700 08/28/2007( 5 ) 08/28/2016 Common Stock 700 $ 0 0 D Stock Option $ 39.09 ( 2 ) ( 3 ) ( 4 ) 07/22/2013 M( 1 ) 700 05/03/2008( 5 ) 05/03/2017 Common Stock 700 $ 0 0 D Stock Option $ 33 ( 2 ) ( 3 ) ( 4 ) 07/22/2013 M( 1 ) 750 05/01/2009( 5 ) 05/01/2018 Common Stock 750 $ 0 0 D Stock Option $ 30.81 ( 2 ) ( 3 ) ( 4 ) 07/22/2013 M( 1 ) 800 03/02/2010( 5 ) 03/02/2019 Common Stock 800 $ 0 200 D Stock Option $ 29.9 ( 2 ) ( 3 ) ( 4 ) 07/22/2013 M( 1 ) 2,800 05/07/2010( 5 ) 05/07/2017 Common Stock 2,800 $ 0 700 D Stock Option $ 39.34 ( 2 ) ( 3 ) ( 4 ) 05/06/2011( 5 ) 05/06/2018 Common Stock 4,500 4,500 D Stock Option $ 48.73 ( 2 ) ( 3 ) 05/05/2012( 5 ) 05/05/2019 Common Stock 6,000 6,000 D Stock Option $ 63.7 ( 2 ) 05/03/2013( 5 ) 05/03/2020 Common Stock 6,000 6,000 D Stock Option $ 71.84 05/02/2014( 5 ) 05/02/2021 Common Stock 8,000 8,000 D

Reporting Owners Reporting Owner Name / Address Relationships Director 10% Owner Officer Other Bryant Todd Wayne 9025 N. LINDBERGH DRIVE PEORIA, IL61615 Vice President, Controller Signatures /s/ Todd W. Bryant 07/24/2013 Signature of Reporting Person Date

Explanation of Responses:

( 1 )The transactions reported above in Table 1 reflect the broker-assisted cashless exercise of stock options. The transactions coded M report the number of shares issuable upon exercise of the options. The line coded F reports the number of shares which were deducted from the total number of shares issuable to pay the exercise price of such options (2,139 shares)and required taxes (1,168 shares). The line coded S reports the shares sold after payment of the exercise price and required taxes. The number of shares reported on the Code F and Code S lines were rounded to the nearest whole share and at an aggregate average price of $85.0032 on 07/22/13. ( 2 )Stock option grant price adjusted to reflect $5 extraordinary dividend declared 11/14/12. ( 3 )Stock Option grant price adjusted to reflect $5 RLI extraordinary dividend declared 11/17/11. ( 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.

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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