8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): December 1, 2010

RLI Corp.

(Exact name of registrant as specified in its charter)

Illinois	001-09463	37-0889946
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

9025 North Lindbergh Drive, Peoria, IL	61615
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (309) 692-1000

Not applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01  Other Events.

On December 1, 2010, RLI announced that its Board of Directors approved an extraordinary cash dividend on its common stock of $7.00 per share.  The dividend is payable on December 29, 2010, to shareholders of record as of December 16, 2010.  Furnished as Exhibit 99.1 and incorporated herein by reference is the press release issued by RLI.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Description
99.1	Press Release dated December 1, 2010. This Exhibit is furnished pursuant to Item 8.01 hereof and should not be deemed to be “filed” under the Securities Exchange Act of 1934.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	RLI CORP.
Date: December 1, 2010	By:	/s/ Daniel O. Kennedy
	Daniel O. Kennedy
	Vice President and General Counsel

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EXHIBIT INDEX

Exhibit No.	Exhibit
99.1	Press Release dated December 1, 2010 This Exhibit is furnished pursuant to Item 8.01 hereof and should not be deemed to be “filed” under the Securities Exchange Act of 1934.

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EX-99.1

Exhibit 99.1

	NEWS RELEASE
	9025 N. Lindbergh Drive  |  Peoria, IL 61615-1431
	P: 309-692-1000  | F: 309-692-1068  |  www.rlicorp.com

FOR IMMEDIATE RELEASE	CONTACT: John Robison
	(309) 693-5846
	John.Robison@rlicorp.com
	www.rlicorp.com

RLI Declares Special Dividend

PEORIA, ILLINOIS, December 1, 2010, RLI Corp. (NYSE:RLI) — The RLI Corp. Board of Directors has declared an extraordinary cash dividend of $7.00 per share.  The dividend is payable on December 29, 2010 to shareholders of record as of December 16, 2010 and is expected to total approximately $147 million.

“We are pleased to announce a return of capital to shareholders in the form of a special dividend,” said RLI Corp. President & CEO Jonathan E. Michael.  “As a result of our continued success, we have accumulated capital that exceeds our current needs.  Our balance sheet remains very strong and provides our policyholders with excellent protection to safeguard their assets.”

RLI will continue to manage its capital effectively for its investors and policyholders.  Since 2006, RLI has returned over half a billion dollars to shareholders, including this special dividend, in the form of dividends and share repurchases.  At the end of the third quarter, RLI had approximately $94.1 million of capacity remaining in its stock repurchase program, which will continue.

RLI is a specialty insurance company serving niche or underserved markets. With a diverse portfolio of property and casualty coverages and surety bonds, it has achieved an underwriting profit in 29 of the last 33 years, including the last 14. RLI and subsidiaries — RLI Insurance Company, Mt. Hawley Insurance Company and RLI Indemnity Company — are rated A+ “Superior” by A.M. Best Company and A+ “Strong” by Standard & Poor’s. RLI operates in all 50 states from office locations across the country.

For additional information, contact RLI Treasurer & Chief Investment Officer John Robison at (309) 693-5846 or at john.robison@rlicorp.com or visit our website at www.rlicorp.com.

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