RLI CORP — Director's Dealing 2007

Feb 16, 2007

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: RLI CORP (RLI)
CIK: 0000084246
Period of Report: 2007-02-15

Reporting Person: MICHAEL JONATHAN E (Director, President)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2007-02-15	Common Stock	J	68.918	$58.04	Acquired	142865.4451	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	61182.2361	Indirect
Common Stock	34595.8298	Indirect
Common Stock	13960.1775	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Option	$15.9063	2009-05-06	Common Stock (6290)	6290	Direct
Stock Option	$15.7813	2010-05-04	Common Stock (6336)	6336	Direct
Stock Option	$20.05	2011-05-03	Common Stock (60000)	60000	Direct
Stock Option	$29.335	2012-05-02	Common Stock (60000)	60000	Direct
Stock Option	$29.55	2013-05-01	Common Stock (60000)	60000	Direct
Stock Option	$35.08	2014-05-06	Common Stock (60000)	60000	Direct
Stock Option	$44.54	2015-05-05	Common Stock (45000)	45000	Direct
Stock Option	$47.44	2016-08-04	Common Stock (10500)	10500	Direct
Stock Option	$50.15	2016-05-04	Common Stock (10500)	10500	Direct
Stock Option	$54.04	2016-11-03	Common Stock (10500)	10500	Direct
Stock Option	$56.21	2017-02-02	Common Stock (10500)	10500	Direct

Footnotes

F2: Ownership reflects dividend reinvestment.

F3: Ownership reflects shares allocated to ESOP participant's account and dividend reinvestment.

F1: Shares purchased through payroll deduction feature of the RLI Dividend Reinvestment Plan.

F5: Ownership reflects dividend reinvestment.

F4: Ownership reflects dividend reinvestment.