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 *
Kennedy Daniel O
  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 General Counsel
(Last)
(First)
(Middle)
9025 N. LINDBERGH DRIVE
3. Date of Earliest Transaction (Month/Day/Year)
11/24/2014
(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 11/24/2014   M   4,120 A $ 13.45 40,933.073 D (1)  
Common Stock 11/24/2014   M   3,520 A $ 18.17 44,453.073 D (1)  
Common Stock 11/24/2014   F   4,070 D $ 50.54 40,383.073 D (1)  
Common Stock               8,113.5005 I By Esop (2)
Common Stock               1,154.8462 I (3) By Executive Deferred Compensation

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 $ 13.45 (4) (5) (6) (7) (8) 11/24/2014   M     4,120 05/07/2010(9) 05/07/2017 Common Stock 4,120 $ 0 0 D  
Stock Option $ 18.17 (4) (5) (6) (7) (8) 11/24/2014   M     3,520 05/06/2011(9) 05/06/2018 Common Stock 3,520 $ 0 3,520 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
Kennedy Daniel O
9025 N. LINDBERGH DRIVE
PEORIA, IL 61615
      Vice President General Counsel  

Signatures

 /s/ Daniel O. Kennedy   11/25/2014
**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) Balance reflects annual company contributions and dividend reinvestment.
(3) Ownership reflects dividend reinvestment
(4) Stock option grant price adjusted to reflect $3.00 extraordinary dividend declared 11/14/13.
(5) Stock option grant price adjusted to reflect $5 extraordinary dividend declared 11/14/12.
(6) Stock Option grant price adjusted to reflect $5 RLI extraordinary dividend declared 11/17/11.
(7) Stock Option grant price adjusted to reflect $7 RLI extraordinary dividend paid 12/29/10.
(8) Stock option grant price and number of stock options adjusted to reflect 2-for-1 stock split on 01/15/14.
(9) 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.
 
Remarks:
Historically, each outstanding stock option grant has been reflected under Table II on all Form 4 filings.  Those previously reported stock options (which are not deemed to be of the same class) will no longer appear on each Form 4, unless specifically included in a transaction.

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