Exhibit 23.1

                         CONSENT OF INDEPENDENT AUDITORS


The Board of Directors and Shareholders
RLI Corp.:

We consent to incorporation by reference in the registration statements on
Form S-8 (Nos. 333-01637 and 333-28625) of RLI Corp. of our reports dated
January 10, 2001, relating to the consolidated balance sheets of RLI Corp.
and Subsidiaries as of December 31, 2000 and 1999, and the related
consolidated statements of earnings and comprehensive earnings, shareholders'
equity, and cash flows for each of the years in the three-year period ended
December 31, 2000, and all related schedules, which reports are incorporated
by reference in, or appear in (with respect to the schedules), the 2000
annual report on Form 10-K of RLI Corp.



KPMG LLP



Chicago, Illinois
March 23, 2001










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