RLI CORP — Director's Dealing 2007

Feb 20, 2007

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: RLI CORP (RLI)
CIK: 0000084246
Period of Report: 2007-02-16

Reporting Person: Kliethermes Craig W (VP, Actuarial RLI Insurance Co)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2007-02-16	Common Stock	J	21	$58.0703	Acquired	65.7253	Indirect

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	1498.957	Direct
Common Stock	474.7996	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Stock Option	$50.15	2016-05-04	Common Stock (5000)	5000	Direct

Footnotes

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

F3: The securities herein were allocated to my account pursuant to the RLI Corp. Executive Deferred Compensation Agreement.

F1: Ownership reflects dividend reinvestment.