RLI CORP — Director's Dealing 2008

May 2, 2008

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: RLI CORP (RLI)
CIK: 0000084246
Period of Report: 2008-05-01

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

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2008-05-01	Stock Option	$50	A	34000	Acquired	2018-05-01	Common Stock (34000)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	75119.2507	Direct
Common Stock	13809.136	Indirect
Common Stock	17464.3333	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Option	$15.9063	2009-05-06	Common Stock (5004)	5004	Direct
Stock Option	$15.7813	2010-05-04	Common Stock (5889)	5889	Direct
Stock Option	$20.05	2011-05-03	Common Stock (579)	579	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
Stock Option	$56.09	2017-05-03	Common Stock (31500)	31500	Direct

Footnotes

F1: Ownership reflects dividend reinvestment.

F4: Pursuant to option schedule wherein 20% of the aggregate number of shares granted may be exercised commencing one year from grant date and each year thereafter in 20% increments.

F3: Ownership reflects dividend reinvestment.

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