Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
SUTKOWSKI EDWARD F
   2. Issuer Name and Ticker or Trading Symbol
RLI CORP [RLI] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director _____ 10% Owner
_____ Officer (give title below) _____ Other (specify below)
(Last)
(First)
(Middle)
SUTKOWSKI & RHOADS LTD, 416 MAIN STREET		 3. Date of Earliest Transaction (Month/Day/Year)
03/13/2007
(Street)

PEORIA, IL 61602		 4. If Amendment, Date Original Filed(Month/Day/Year)
 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)		 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)		 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)		 5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)		 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)		 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock               48,066.1562 (1) D  
Common Stock 03/13/2007   J(2)   472.4056 A $ 55.7227 77,648.9844 (3) I By Directors Trust
Common Stock 03/08/2007   J(4) V 3,308.6868 A $ 0 3,308.6868 I By IRA
Common Stock 03/15/2007   J(5) V 66,338.6103 A $ 0 69,647.2971 I By IRA
Common Stock 03/15/2007   J(5) V 66,338.6103 D $ 0 0 (6) I By Trust
Common Stock 03/08/2007   J(4) V 3,308.6868 D $ 0 0 (7) I S&R Money Purchase

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)		 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)		 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)		 6. Date Exercisable and Expiration Date
(Month/Day/Year)		 7. Title and Amount of Underlying Securities
(Instr. 3 and 4)		 8. Price of Derivative Security
(Instr. 5)		 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)		 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Stock Option $ 22.75             02/01/2003 02/01/2012 Common Stock 600   600 D  
Stock Option $ 27.51             02/03/2004 02/03/2013 Common Stock 1,200   1,200 D  
Stock Option $ 40.39             02/02/2005 02/02/2014 Common Stock 3,600   3,600 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
SUTKOWSKI EDWARD F
SUTKOWSKI & RHOADS LTD
416 MAIN STREET
PEORIA, IL 61602		   X      

Signatures

 Edward F Sutkowski   03/15/2007
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Ownership reflects dividend reinvestment.
(4) These shares were transferred out of the Sutkowski & Rhoades Money Purchase Pension Plan into the Edward F. Sutkowski IRA Rollover No. 2.
(2) Securities herein were allocated pursuant to the RLI Corp. Directors' Irrevocable Trust Agreement.
(7) Ownership reflects dividend reinvestment.
(6) Ownership reflects dividend reinvestment.
(3) Ownership reflects dividend reinvestment.
(5) Shares transferred to accurately reflect the nature of ownership.

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