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 *
DONDANVILLE JOSEPH E
   2. Issuer Name and Ticker or Trading Symbol
RLI CORP [RLI] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
Senior Vice President/CFO
(Last)
(First)
(Middle)
9025 N. LINDBERGH DRIVE		 3. Date of Earliest Transaction (Month/Day/Year)
08/01/2008
(Street)

PEORIA, IL 61615		 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               71,409.015 D  
Common Stock               24,720.3851 (1) I By Empl. Stock Ownership Plan
Common Stock               8,639.0667 (2) I By Trust
Common Stock               200 I By wife, as Custodian

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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 $ 15.7813             05/04/2001 05/04/2010 Common Stock 12,903   12,903 D  
Stock Option $ 20.05             05/03/2002 05/03/2011 Common Stock 22,000   22,000 D  
Stock Option $ 29.335             05/02/2003 05/02/2012 Common Stock 32,000   32,000 D  
Stock Option $ 29.55             05/01/2004 05/01/2013 Common Stock 28,000   28,000 D  
Stock Option $ 35.08             05/06/2005 05/06/2014 Common Stock 28,000   28,000 D  
Stock Option $ 44.54             05/05/2006 05/05/2015 Common Stock 21,000   21,000 D  
Stock Option $ 50             05/01/2009 05/01/2018 Common Stock 5,000   5,000 (3) D  
Stock Option $ 50.15             05/04/2007 05/04/2016 Common Stock 17,500   17,500 (3) D  
Stock Option $ 56.09             05/03/2008 05/03/2017 Common Stock 18,000   18,000 (3) D  
Stock Option $ 54.62 08/01/2008   A   5,000   08/01/2009 08/01/2018 Common Stock 5,000 $ 0 5,000 (3) D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
DONDANVILLE JOSEPH E
9025 N. LINDBERGH DRIVE
PEORIA, IL 61615		       Senior Vice President/CFO  

Signatures

 JosephEDondanville   08/01/2008
**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 shares allocated to ESOP participant's account and dividend reinvestment.
(2) Ownership reflects dividend reinvestment.
(3) 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.

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