RLI CORP — Director's Dealing 2007

Feb 7, 2007

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: RLI CORP (RLI)
CIK: 0000084246
Period of Report: 2007-02-05

Reporting Person: STONE MICHAEL J (President RLI Insurance Compan)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2007-02-05	Common Stock	M	3250	$13	Acquired	55783.9268	Direct
2007-02-05	Common Stock	F	745	$56.73	Disposed	55038.9268	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2007-02-05	Stock Option	$13	M	3250	Disposed	2007-05-01	Common Stock (3250)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	12581.1057	Indirect
Common Stock	17117.9637	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Option	$15.9063	2009-05-06	Common Stock (6004)	6004	Direct
Stock Option	$15.7813	2010-05-04	Common Stock (5889)	5889	Direct
Stock Option	$20.05	2011-05-03	Common Stock (30000)	30000	Direct
Stock Option	$21.1	2008-05-07	Common Stock (13838)	13838	Direct
Stock Option	$29.335	2012-05-02	Common Stock (48000)	48000	Direct
Stock Option	$29.55	2013-05-01	Common Stock (40000)	40000	Direct
Stock Option	$35.08	2014-05-06	Common Stock (40000)	40000	Direct
Stock Option	$44.54	2015-05-05	Common Stock (30000)	30000	Direct
Stock Option	$50.15	2016-05-04	Common Stock (27500)	27500	Direct

Footnotes

F1: Ownership reflects dividend reinvestment.

F3: Ownership reflects dividend reinvestment.

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