RLI CORP — Director's Dealing 2005

May 10, 2005

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: RLI CORP (RLI)
CIK: 0000084246
Period of Report: 2005-05-05

Reporting Person: JACOBY AARON H (Vice President Corp. Develop.)

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2005-05-05	Stock Option	$44.54	A	3500	Acquired	2015-05-05	Common Stock (3500)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	220.058	Direct
Common Stock	1519.9184	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Stock Option	$32.85	2013-08-11	Common Stock (1500)	1500	Direct
Stock Option	$35.08	2014-05-06	Common Stock (4000)	4000	Direct

Footnotes

F2: Ownership reflects shares allocated to ESOP participant's account and dividend reinvestment.

F1: Ownership reflects dividend reinvestment.