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UNITEDSTATES
SECURITIESANDEXCHANGECOMMISSION
Washington,D.C.20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-08621

Name of Fund: BlackRock MuniHoldings New Jersey Insured Fund, Inc. (MUJ)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock
MuniHoldings New Jersey Insured Fund, Inc., 40 East 52nd Street, New York, NY 10022.

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 07/31/2009

Date of reporting period: 07/31/2009

Item 1 – Report to Stockholders

EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS

Annual Report

JULY 31, 2009

BlackRock MuniHoldings California Insured Fund, Inc. (MUC)

BlackRock MuniHoldings New Jersey Insured Fund, Inc. (MUJ)

BlackRock MuniYield Insured Investment Fund (MFT)

BlackRock MuniYield Michigan Insured Fund, Inc. (MIY)

BlackRock MuniYield New Jersey Insured Fund, Inc. (MJI)

BlackRock MuniYield Pennsylvania Insured Fund (MPA)

NOT FDIC INSURED

MAY LOSE VALUE

NO BANK GUARANTEE

Table of Contents   
  Page 
Dear Shareholder  3 
Annual Report:   
Fund Summaries  4 
The Benefits and Risks of Leveraging  10 
Derivative Financial Instruments  10 
Financial Statements:   
   Schedules of Investments  11 
   Statements of Assets and Liabilities  32 
   Statements of Operations  33 
   Statements of Changes in Net Assets  34 
   Statements of Cash Flows  37 
Financial Highlights  38 
Notes to Financial Statements  44 
Report of Independent Registered Public Accounting Firm  53 
Important Tax Information  55 
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements  56 
Automatic Dividend Reinvestment Plan  60 
Officers and Directors  61 
Additional Information  65 

2 ANNUAL REPORT JULY 31, 2009

Dear Shareholder

The past 12 months reveal two distinct market backdrops — one of extreme investor pessimism and decided weakness, and another of cautious optimism

and nascent signs of recovery. The first half of the period was characterized by the former, as the global financial crisis erupted into the worst recession

in decades. Daily headlines recounted universal macroeconomic deterioration, financial sector casualties, volatile swings in global equity markets, and

unprecedented government intervention that included widespread (and globally coordinated) monetary and quantitative easing by central banks and large-

scale fiscal stimuli. Sentiment improved noticeably in March 2009, however, on the back of new program announcements by the US Treasury Department

and Federal Reserve, as well as generally stronger-than-expected economic data in a few key areas, including retail sales, business and consumer confidence,

manufacturing and housing.

In this environment, US equities contended with extraordinary volatility, posting steep declines through mid-March 2009 before going on a three-month

rally that largely negated year-to-date losses. Late in the period, investor enthusiasm waned and a correction ensued for several weeks, mostly as a result

of profit taking and portfolio rebalancing, as opposed to a change in the economic outlook. Equities rallied once again as the period drew to a close, result-

ing in positive year-to-date returns for all major indexes. The experience in international markets was similar to that in the United States, though performance

was generally more extreme both on the decline and on the upturn. Notably, emerging markets, which lagged most developed regions through the downturn,

reassumed leadership in 2009 as these areas of the globe have generally seen a stronger acceleration in economic recovery.

In fixed income markets, while the flight to quality remained a prevalent theme, relatively attractive yields and distressed valuations, alongside a more

favorable macro environment, eventually captured investor attention, leading to a sharp recovery in non-Treasury assets. This has been particularly evident

in the high yield sector, which has firmly outpaced all other taxable asset classes since the start of 2009. At the same time, the municipal bond market

enjoyed a strong return after the exceptional market volatility of 2008, buoyed by a combination of attractive valuations, robust retail investor demand and

a slowdown in forced selling. Direct aid to state and local governments via the American Recovery and Reinvestment Act of 2009 has also lent support

to municipal bonds.

Total Returns as of July 31, 2009  6-month  12-month 
US equities (S&P 500 Index)  21.18%  (19.96)% 
Small cap US equities (Russell 2000 Index)  26.61  (20.72) 
International equities (MSCI Europe, Australasia, Far East Index)  30.63  (22.60) 
US Treasury securities (Merrill Lynch 10-Year US Treasury Index)  (3.91)  7.58 
Taxable fixed income (Barclays Capital US Aggregate Bond Index)  4.47  7.85 
Tax-exempt fixed income (Barclays Capital Municipal Bond Index)  4.38  5.11 
High yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index)  30.11  5.30 
       Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an index.   
The market environment has clearly improved since the beginning of the year, but a great deal of uncertainty and risk remain. Through periods of market tur- 
bulence, as ever, BlackRock’s full resources are dedicated to the management of our clients’ assets. For additional insight and timely “food for thought,” we 
invite you to visit our award-winning Shareholder® magazine, now available exclusively online at www.blackrock.com/shareholdermagazine. We thank you 
for entrusting BlackRock with your investments, and we look forward to continuing to serve you in the months and years ahead.   


Announcement to Shareholders

On June 16, 2009, BlackRock, Inc. announced that it received written notice from Barclays PLC (“Barclays”) in which Barclays’ Board of Directors had

accepted BlackRock’s offer to acquire Barclays Global Investors (“BGI”). At a special meeting held on August 6, 2009, BlackRock’s proposed purchase of

BGI was approved by an overwhelming majority of Barclays’ voting shareholders, an important step toward closing the transaction. The combination of

BlackRock and BGI will bring together market leaders in active and index strategies to create the preeminent asset management firm. The transaction is

scheduled to be completed in the fourth quarter of 2009, subject to important fund shareholder and regulatory approvals.

THIS PAGE NOT PART OF YOUR FUND REPORT 3

Fund Summary as of July 31, 2009 BlackRock MuniHoldings California Insured Fund, Inc.

Investment Objective

BlackRock MuniHoldings California Insured Fund, Inc. (MUC) (the “Fund”) seeks to provide shareholders with current income exempt from federal and
California income taxes. The Fund seeks to achieve this objective by investing primarily in a portfolio of long-term, investment-grade municipal obligations,
the interest on which, in the opinion of bond counsel to the issuer, is exempt from federal and California income taxes. No assurance can be given that the
Fund’s investment objective will be achieved. The Fund changed its fiscal year end to July 31.

Performance

For the one month ended July 31, 2009, the Fund returned 10.59% based on market price and 1.75% based on net asset value (“NAV”). For the same
period, the closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average return of 7.02% based on market price and 2.00%
on a NAV basis. All returns reflect reinvestment of dividends. The performance of the Lipper category does not necessarily correlate to that of the Fund,
as the Lipper group comprises funds representing various states and not California alone. The Fund’s discount to NAV, which narrowed during the period,
accounts for the difference between performance based on price and performance based on NAV. Duration positioning was slightly longer than neutral
for the period. The Fund benefited from a relatively lower exposure to poorer-rated monoline insurers. The underlying quality of the securities covered by the
insurance wrap is sound, which helped protect valuations. Our strategy is to pursue a balanced approach to returns, continue to bolster current yield and
commit cash reserves when research uncovers appropriate opportunities. Credit fundamentals warrant monitoring in the current weak economic environ-
ment, especially in California, considering budgetary challenges. Management is alert to improve quality as opportunities arise. Low short-term rates
resulted in increased income to the Fund from leverage, which allowed for a dividend increase beginning with the July 1, 2009 distribution.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

Fund Information

Symbol on New York Stock Exchange (“NYSE”)          MUC 
Initial Offering Date        February 27, 1998 
Yield on Closing Market Price as of July 31, 2009 ($12.18)1          6.21% 
Tax Equivalent Yield2          9.55% 
Current Monthly Distribution per Common Share3          $0.063 
Current Annualized Distribution per Common Share3          $0.756 
Leverage as of July 31, 20094          40% 
   1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.   
       Past performance does not guarantee future results.           
   2 Tax equivalent yield assumes the maximum federal tax rate of 35%.           
   3 The distribution is not constant and is subject to change.           
   4 Represents Auction Market Preferred Shares (“Preferred Shares”) and tender option bond trusts (“TOBs”) as a percentage of total managed assets, 
       which is the total assets of the Fund (including any assets attributable to Preferred Shares and TOBs) minus the sum of accrued liabilities. For a 
       discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 10.     
The table below summarizes the changes in the Fund’s market price and NAV per share:       
  7/31/09  6/30/09  Change  High  Low 
Market Price  $12.18  $11.07  10.03%  $12.19     $10.95 
Net Asset Value  $13.21  $13.05  1.23%  $13.33     $13.00 
The following unaudited charts show the sector and credit quality allocations of the Fund’s long-term investments:   

     Sector Allocations     
  7/31/09  6/30/09 
County/City/Special District/     
   School District  46%  47% 
Utilities  24  24 
Transportation  13  12 
Education  9  9 
Health  4  4 
State  4  4 

     Credit Quality Allocations5     
  7/31/09  6/30/09 
AAA/Aaa  37%     43% 
AA/Aa  29  23 
A/A  33  33 
BBB/Baa  1  1 
 5 Using the higher of Standard & Poor’s (“S&P’s”) or Moody’s Investors 
     Service (“Moody’s”) ratings.     

4 ANNUAL REPORT JULY 31, 2009

Fund Summary as of July 31, 2009 BlackRock MuniHoldings New Jersey Insured Fund, Inc.

Investment Objective

BlackRock MuniHoldings New Jersey Insured Fund, Inc. (MUJ) (the “Fund”) seeks to provide shareholders with current income exempt from federal income
tax and New Jersey personal income taxes by investing in a portfolio of long-term, investment grade municipal obligations the interest on which, in the opin-
ion of bond counsel to the issuer, is exempt from federal income tax and New Jersey personal income taxes. No assurance can be given that the Fund’s
investment objective will be achieved.

Performance

For the 12 months ended July 31, 2009, the Fund returned 9.45% based on market price and 6.13% based on NAV. For the same period, the closed-end
Lipper Single-State Insured Municipal Debt Funds category posted an average return of 5.13% based on market price and 0.69% on a NAV basis. All returns
reflect reinvestment of dividends. The performance of the Lipper category does not necessarily correlate to that of the Fund, as the Lipper group comprises
funds representing various states and not New Jersey alone. The Fund’s discount to NAV, which narrowed during the period, accounts for the difference
between performance based on price and performance based on NAV. The Fund benefited from the declining interest rate environment during the period.
Sector allocation was also accretive to performance, as the Fund’s allocation to pre-refunded and escrowed issues outperformed. Low short-term rates
resulted in increased income to the Fund from leverage, which allowed for a dividend increase beginning with the July 1, 2009 distribution.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

Fund Information

Symbol on NYSE           MUJ 
Initial Offering Date        March 11, 1998 
Yield on Closing Market Price as of July 31, 2009 ($13.38)1          5.87% 
Tax Equivalent Yield2          9.03% 
Current Monthly Distribution per Common Share3          $0.0655 
Current Annualized Distribution per Common Share3          $0.7860 
Leverage as of July 31, 20094          38% 
   1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.   
       Past performance does not guarantee future results.           
   2 Tax equivalent yield assumes the maximum federal tax rate of 35%.           
   3 The distribution is not constant and is subject to change.           
   4 Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund (including any assets attributa- 
       ble to Preferred Shares and TOBs) minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The 
       Benefits and Risks of Leveraging on page 10.           
The table below summarizes the changes in the Fund’s market price and NAV per share:       
  7/31/09  7/31/08  Change  High  Low 
Market Price  $13.38  $12.93  3.48%  $13.42   $ 8.38 
Net Asset Value  $14.40  $14.35  0.35%  $14.69   $11.95 
The following unaudited charts show the sector and credit quality allocations of the Fund’s long-term investments:   

     Sector Allocations     
  7/31/09  7/31/08 
State  35%  34% 
County/City/Special District/     
   School District  17  18 
Transportation  15  16 
Education  10  13 
Health  9  8 
Housing  7  4 
Utilities  5  6 
Tobacco  1  1 
Corporate  1  — 

     Credit Quality Allocations5     
  7/31/09  7/31/08 
AAA/Aaa       41%  43% 
AA/Aa  20  36 
A/A  27  14 
BBB/Baa  9  6 
Not Rated6  3  1 
 5 Using the higher of S&P’s and Moody’s ratings.   
 6 The investment advisor has deemed certain of these non-rated 
     securities to be of investment grade quality. As of July 31, 2009 and 
     2008, the market value of these securities was $15,862,145, repre- 
     senting 3% and $1,972,106, representing 1%, respectively, of the 
     Fund’s long-term investments.     

ANNUAL REPORT JULY 31, 2009 5

Fund Summary as of July 31, 2009 BlackRock MuniYield Insured Investment Fund, Inc.

Investment Objective

BlackRock MuniYield Insured Investment Fund (MFT) (the “Fund”) seeks to provide shareholders with as high a level of current income exempt from
regular federal income taxes as is consistent with its investment policies and prudent investment management. The Fund also seeks to provide shareholders
with shares the value of which is exempt from Florida intangible personal property tax. Effective September 16, 2008, BlackRock MuniYield Florida Insured
Fund was renamed BlackRock MuniYield Insured Investment Fund. No assurance can be given that the Fund’s investment objective will be achieved.

Performance

For the 12 months ended July 31, 2009, the Fund returned 7.08% based on market price and 1.94% based on NAV. For the same period, the closed-end
Lipper Insured Municipal Debt Funds (Leveraged) category posted an average return of 7.93% based on market price and 1.51% on a NAV basis. All
returns reflect reinvestment of dividends. The Fund’s discount to NAV, which narrowed during the period, accounts for the difference between performance
based on price and performance based on NAV. Sector allocation played an important role in determining how the Fund performed during the period. The
Fund was significantly overweight in pre-refunded securities in the one- to five-year maturity range. This enhanced performance as the yield curve steep-
ened. The Fund’s overweight position in water and sewer bonds, which outperformed, also contributed positively to the Fund’s performance. Low short-term
rates resulted in increased income to the Fund from leverage, which allowed for a dividend increase beginning with the July 1, 2009 distribution.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

Fund Information

Symbol on NYSE          MFT 
Initial Offering Date        October 30, 1992 
Yield on Closing Market Price as of July 31, 2009 ($11.80)1          6.71% 
Tax Equivalent Yield2          10.32% 
Current Monthly Distribution per Common Share3          $0.066 
Current Annualized Distribution per Common Share3          $0.792 
Leverage as of July 31, 20094          40% 
   1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.   
       Past performance does not guarantee future results.           
   2 Tax equivalent yield assumes the maximum federal tax rate of 35%.           
   3 The distribution is not constant and is subject to change.           
   4 Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund (including any assets attributa- 
ble to Preferred Shares and TOBs) minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The 
       Benefits and Risks of Leveraging on page 10.           
The table below summarizes the changes in the Fund’s market price and NAV per share:       
  7/31/09  7/31/08  Change  High  Low 
Market Price  $11.80  $11.75  0.43%  $11.97     $ 6.70 
Net Asset Value  $12.83  $13.42  (4.40)%  $13.68     $10.36 
The following unaudited charts show the sector and credit quality allocations of the Fund’s long-term investments:   

     Sector Allocations     
  7/31/09  7/31/08 
Utilities       28%  11% 
County/City/Special District/     
   School District  22  33 
Transportation  17  23 
Health  15  14 
State  10  5 
Education  5  8 
Housing  3  6 

     Credit Quality Allocations5     
  7/31/09  7/31/08 
AAA/Aaa       55%  41% 
AA/Aa  13  41 
A/A  27  12 
BBB/Baa  —  1 
Not Rated6  5  5 
 5 Using the higher of S&P’s or Moody’s ratings.   
 6 The investment advisor has deemed certain of these non-rated 
     securities to be of investment grade quality. As of July 31, 2009 and 
     2008, the market value of these securities was $7,910,411, repre- 
     senting 5% and $8,223,585, representing 4%, respectively, of the 
     Fund’s long-term investments.     

6 ANNUAL REPORT JULY 31, 2009

Fund Summary as of July 31, 2009 BlackRock MuniYield Michigan Insured Fund, Inc.

Investment Objective

BlackRock MuniYield Michigan Insured Fund, Inc. (MIY) (the “Fund”) seeks to provide shareholders with as high a level of current income exempt from fed-
eral income tax and Michigan income taxes as is consistent with its investment policies and prudent investment management by investing primarily in a
portfolio of long-term municipal obligations the interest on which, in the opinion of bond counsel to the issuers, is exempt from federal income tax and
Michigan income taxes. No assurance can be given that the Fund’s investment objective will be achieved.

Performance

For the 12 months ended July 31, 2009, the Fund returned 5.95% based on market price and 4.66% based on NAV. For the same period, the closed-end
Lipper Single-State Insured Municipal Debt Funds category posted an average return of 5.13% based on market price and 0.69% on a NAV basis. All
returns reflect reinvestment of dividends. The performance of the Lipper category does not necessarily correlate to that of the Fund, as the Lipper group
comprises funds representing various states and not Michigan alone. The Fund’s discount to NAV, which narrowed during the period, accounts for the
difference between performance based on price and performance based on NAV. The Fund benefited from a declining interest rate environment during the
period. Sector allocation was accretive to performance, as the Fund’s allocation to pre-refunded and escrowed issues outperformed. Low short-term rates
resulted in increased income to the Fund from leverage, which allowed for a dividend increase beginning with the July 1, 2009 distribution.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

Fund Information

Symbol on NYSE          MIY 
Initial Offering Date        October 30, 1992 
Yield on Closing Market Price as of July 31, 2009 ($12.25)1          6.51% 
Tax Equivalent Yield2          10.02% 
Current Monthly Distribution per Common Share3          $0.0665 
Current Annualized Distribution per Common Share3          $0.7980 
Leverage as of July 31, 20094               39% 
   1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.   
       Past performance does not guarantee future results.           
   2 Tax equivalent yield assumes the maximum federal tax rate of 35%.           
   3 The distribution is not constant and is subject to change.           
   4 Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund (including any assets attributa- 
       ble to Preferred Shares and TOBs) minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The 
       Benefits and Risks of Leveraging on page 10.           
The table below summarizes the changes in the Fund’s market price and NAV per share:       
  7/31/09  7/31/08  Change  High  Low 
Market Price  $12.25  $12.30  (0.41)%  $12.43       $ 7.00 
Net Asset Value  $13.93  $14.16  (1.62)%  $14.50       $11.89 
The following unaudited charts show the sector and credit quality allocations of the Fund’s long-term investments:   

     Sector Allocations     
  7/31/09  7/31/08 
County/City/Special District/     
   School District  22%     24% 
Health  14  13 
Utilities  14  12 
Corporate  14  13 
State  12  9 
Transportation  11  12 
Education  10  15 
Housing  3  2 

     Credit Quality Allocations5     
  7/31/09  7/31/08 
AAA/Aaa       32%  35% 
AA/Aa  22  47 
A/A  42  15 
BBB/Baa  2  3 
Not Rated  26  — 
 5 Using the higher of S&P’s or Moody’s ratings.   
 6 The investment advisor has deemed certain of these non-rated 
     securities to be of investment grade quality. As of July 31, 2009, the 
     market value of these securities was $3,021,972, representing 1% of 
     the Fund’s long-term investments.     

ANNUAL REPORT JULY 31, 2009 7

Fund Summary as of July 31, 2009

BlackRock MuniYield New Jersey Insured Fund, Inc.

Investment Objective

BlackRock MuniYield New Jersey Insured Fund, Inc. (MJI) (the “Fund”) seeks to provide shareholders with as high a level of current income exempt from fed-
eral income tax and New Jersey personal income taxes as is consistent with its investment policies and prudent investment management by investing primarily
in a portfolio of long-term municipal obligations the interest on which, in the opinion of bond counsel to the issuers, is exempt from federal income tax and
New Jersey personal income taxes. No assurance can be given that the Fund’s investment objective will be achieved.

Performance

For the 12 months ended July 31, 2009, the Fund returned 6.22% based on market price and 4.94% based on NAV. For the same period, the closed-end
Lipper Single-State Insured Municipal Debt Funds category posted an average return of 5.13% based on market price and 0.69% on a NAV basis. All
returns reflect reinvestment of dividends. The performance of the Lipper category does not necessarily correlate to that of the Fund, as the Lipper group
comprises funds representing various states and not New Jersey alone. The Fund’s discount to NAV, which narrowed during the period, accounts for the
difference between performance based on price and performance based on NAV. The Fund benefited from a declining interest rate environment during the
period. Sector allocation was accretive to performance, as the Fund’s allocation to pre-refunded and escrowed issues outperformed. Low short-term rates
resulted in increased income to the Fund from leverage, which allowed for a dividend increase beginning with the July 1, 2009 distribution.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

Fund Information                 
  Symbol on NYSE              MJI 
  Initial Offering Date            October 30, 1992 
  Yield on Closing Market Price as of July 31, 2009 ($12.82)1          5.99% 
  Tax Equivalent Yield2              9.22% 
  Current Monthly Distribution per Common Share3            $0.064 
  Current Annualized Distribution per Common Share3            $0.768 
  Leverage as of July 31, 20094              36% 
     1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.   
         Past performance does not guarantee future results.             
     2 Tax equivalent yield assumes the maximum federal tax rate of 35%.           
     3 The distribution is not constant and is subject to change.             
     4 Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund (including any assets attributa- 
  ble to Preferred Shares and TOBs) minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The 
         Benefits and Risks of Leveraging on page 10.             
  The table below summarizes the changes in the Fund’s market price and NAV per share:       
        7/31/09  7/31/08  Change  High  Low 
  Market Price      $12.82  $12.81  0.08%  $13.02  $ 7.19 
  Net Asset Value      $14.07  $14.23  (1.12)%  $14.58  $11.39 
The following unaudited charts show the sector and credit quality allocations of the Fund’s long-term investments:
       Sector Allocations                   Credit Quality Allocations5     
    7/31/09  7/31/08        7/31/09  7/31/08 
  State       26%     26%         AAA/Aaa             32%  33% 
  County/City/Special District/             AA/Aa      22  46 
     School District  18  16         A/A      34  11 
  Education  15  17         BBB/Baa      8  4 
  Utilities  12  12         Not Rated6    4  6 
  Transportation  10  11  5 Using the higher of S&P’s and Moody’s ratings.   
  Health  10  11  6 The investment advisor has deemed certain of these non-rated 
  Housing  7  5               securities to be of investment grade quality. As of July 31, 2009 
  Tobacco  1  1               and 2008, the market value of these securities was $7,777,159, 
                     representing 4% and $12,649,795, representing 6%, respectively, of 
  Corporate  1  1               the Fund’s long-term investments.     

8 ANNUAL REPORT

JULY 31, 2009

Fund Summary as of July 31, 2009 BlackRock MuniYield Pennsylvania Insured Fund

Investment Objective

BlackRock MuniYield Pennsylvania Insured Fund (MPA) (the “Fund”) seeks to provide shareholders with as high a level of current income exempt from federal
and Pennsylvania income taxes as is consistent with its investment policies and prudent investment management by investing primarily in a portfolio of long-term
municipal obligations the interest on which, in the opinion of bond counsel to the issuers, is exempt from federal and Pennsylvania income taxes. No assurance
can be given that the Fund’s investment objective will be achieved.

Performance

For the 12 months ended July 31, 2009, the Fund returned 9.78% based on market price and 5.88% based on NAV. For the same period, the closed-end
Lipper Single-State Insured Municipal Debt Funds category posted an average return of 5.13% based on market price and 0.69% on a NAV basis. All
returns reflect reinvestment of dividends. The Fund’s discount to NAV, which narrowed during the period, accounts for the difference between performance
based on price and performance based on NAV. The Fund benefited primarily from its exposure to the short end of the yield curve. This had a positive
impact on performance, as exposure to pre-refunded and escrowed issues outperformed at the same time rates at the longer end of the yield curve
increased. Low short-term rates, however, resulted in increased income to the Fund from leverage, which allowed a dividend increase beginning with the
July 1, 2009 distribution.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

Fund Information

Symbol on NYSE          MPA 
Initial Offering Date                  October 30, 1992 
Yield on Closing Market Price as of July 31, 2009 ($12.87)1          6.11% 
Tax Equivalent Yield2          9.40% 
Current Monthly Distribution per Common Share3          $0.0655 
Current Annualized Distribution per Common Share3          $0.7860 
Leverage as of July 31, 20094          36% 
   1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.   
       Past performance does not guarantee future results.           
   2 Tax equivalent yield assumes the maximum federal tax rate of 35%.           
   3 The distribution is not constant and is subject to change.           
   4 Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund (including any assets attributa- 
       ble to Preferred Shares and TOBs) minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The 
       Benefits and Risks of Leveraging on page 10.           
The table below summarizes the changes in the Fund’s market price and NAV per share:       
  7/31/09  7/31/08  Change  High  Low 
Market Price  $12.87  $12.43  3.54%  $12.92       $ 7.09 
Net Asset Value  $14.28  $14.30  (0.14)%  $14.66     $11.00 
The following unaudited charts show the sector and credit quality allocations of the Fund’s long-term investments:   

     Sector Allocations     
  7/31/09  7/31/08 
County/City/Special District/     
   School District  38%  29% 
State  15  13 
Transportation  11  9 
Utilities  11  14 
Health  9  8 
Corporate  6  4 
Education  6  20 
Housing  4  3 

     Credit Quality Allocations5     
  7/31/09  7/31/08 
AAA/Aaa  39%     48% 
AA/Aa  42     35 
A/A  18     14 
BBB/Baa  1  3 
 5 Using the higher of S&P’s or Moody’s ratings.   

ANNUAL REPORT JULY 31, 2009 9

The Benefits and Risks of Leveraging

The Funds may utilize leverage to seek to enhance the yield and NAV of
their Common Shares. However, these objectives cannot be achieved in all
interest rate environments.

To leverage, the Funds issue Preferred Shares, which pay dividends at
prevailing short-term interest rates, and invests the proceeds in long-term
municipal bonds. In general, the concept of leveraging is based on the
premise that the cost of assets to be obtained from leverage will be based
on short-term interest rates, which normally will be lower than the income
earned by each Fund on its longer-term portfolio investments. To the extent
that the total assets of the Fund (including the assets obtained from lever-
age) are invested in higher-yielding portfolio investments, the Fund’s
Common Shareholders will benefit from the incremental yield.

To illustrate these concepts, assume a Fund’s Common Shares capital-
ization is $100 million and it issues Preferred Shares for an additional
$50 million, creating a total value of $150 million available for investment
in long-term municipal bonds. If prevailing short-term interest rates are
3% and long-term interest rates are 6%, the yield curve has a strongly
positive slope. In this case, the Fund pays dividends on the $50 million of
Preferred Shares based on the lower short-term interest rates. At the same
time, the securities purchased by the Fund with assets received from the
Preferred Shares issuance earn the income based on long-term interest
rates. In this case, the dividends paid to Preferred Shareholders are signifi-
cantly lower than the income earned on the Fund’s long-term investments,
and therefore the Common Shareholders are the beneficiaries of the incre-
mental net income.

Conversely, if prevailing short-term interest rates rise above long-term inter-
est rates of 6%, the yield curve has a negative slope. In this case, the Fund
pays dividends on the higher short-term interest rates whereas the Fund’s
total portfolio earns income based on lower long-term interest rates. If
short-term interest rates rise, narrowing the differential between short-term
and long-term interest rates, the incremental net income pickup on the
Common Shares will be reduced or eliminated completely.

Furthermore, the value of the Fund’s portfolio investments generally varies
inversely with the direction of long-term interest rates, although other
factors can influence the value of portfolio investments. In contrast, the
redemption value of the Fund’s Preferred Shares does not fluctuate in
relation to interest rates. As a result, changes in interest rates can influence
the Fund’s NAV positively or negatively in addition to the impact on Fund
performance from leverage from Preferred Shares discussed above.

The Funds may also, from time to time, leverage their assets through the
use of tender option bond (“TOB”) programs, as described in Note 1 of the

Notes to Financial Statements. TOB investments generally will provide the
Funds with economic benefits in periods of declining short-term interest
rates, but expose the Funds to risks during periods of rising short-term
interest rates similar to those associated with Preferred Shares issued by
the Funds, as described above. Additionally, fluctuations in the market
value of municipal bonds deposited into the TOB trust may adversely
affect the Funds’ NAV per share.

The use of leverage may enhance opportunities for increased returns to the
Funds and Common Shareholders, but as described above, it also creates
risks as short- or long-term interest rates fluctuate. Leverage also will gen-
erally cause greater changes in the Funds’ NAV, market price and dividend
rate than a comparable portfolio without leverage. If the income derived
from securities purchased with assets received from leverage exceeds the
cost of leverage, the Funds’ net income will be greater than if leverage had
not been used. Conversely, if the income from the securities purchased is
not sufficient to cover the cost of leverage, the Funds’ net income will be
less than if leverage had not been used, and therefore the amount avail-
able for distribution to Common Shareholders will be reduced. The Funds
may be required to sell portfolio securities at inopportune times or at dis-
tressed values in order to comply with regulatory requirements applicable
to the use of leverage or as required by the terms of leverage instruments,
which may cause the Funds to incur losses. The use of leverage may limit
the Funds’ ability to invest in certain types of securities or use certain types
of hedging strategies, such as in the case of certain restrictions imposed
by ratings agencies that rate preferred shares issued by a Fund. The Funds
will incur expenses in connection with the use of leverage, all of which are
borne by the holders of the Common Shares and may reduce returns on
the Common Shares.

Under the Investment Company Act of 1940, each Fund is permitted to
issue Preferred Shares in an amount of up to 50% of its total managed
assets at the time of issuance. Under normal circumstances, each Fund
anticipates that the total economic leverage from Preferred Shares and
TOBs will not exceed 50% of its total managed assets at the time such
leverage is incurred. As of July 31, 2009, the Funds had economic leverage
from Preferred Shares and TOBs as a percentage of their total managed
assets as follows:

  Percent of 
  Leverage 
BlackRock MuniHoldings California Insured Fund, Inc  40% 
BlackRock MuniHoldings New Jersey Insured Fund, Inc  38% 
BlackRock MuniYield Insured Investment Fund  40% 
BlackRock MuniYield Michigan Insured Fund, Inc  39% 
BlackRock MuniYield New Jersey Insured Fund, Inc  36% 
BlackRock MuniYield Pennsylvania Insured Fund  36% 

Derivative Financial Instruments

The Funds may invest in various derivative instruments, including swaps, as
specified in Note 2 of the Notes to Financial Statements, which constitute
forms of economic leverage. Such instruments are used to obtain exposure
to a market without owning or taking physical custody of securities or to
hedge market and/or interest rate risks. Such derivative instruments involve
risks, including the imperfect correlation between the value of a derivative
instrument and the underlying asset, possible default of the counterparty
to the transaction and illiquidity of the derivative instrument. The Funds’
ability to successfully use a derivative instrument depends on the invest-

ment advisor’s ability to accurately predict pertinent market movements,
which cannot be assured. The use of derivative instruments may result in
losses greater than if they had not been used, may require a Fund to sell or
purchase portfolio securities at inopportune times or for distressed values,
may limit the amount of appreciation a Fund can realize on an investment
or may cause a Fund to hold a security that it might otherwise sell. The
Funds’ investments in these instruments are discussed in detail in the
Notes to Financial Statements.

10 ANNUAL REPORT JULY 31, 2009

Schedule of Investments July 31, 2009 BlackRock MuniHoldings California Insured Fund, Inc. (MUC)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
     California — 124.5%       
Corporate — 0.5%       
City of Chula Vista California, RB, San Diego Gas,       
 Series A, Remarketed, 5.88%, 2/15/34  $ 2,435  $ 2,468,360 
County/City/Special District/School District — 55.1%     
Alameda County Joint Powers Authority, RB,       
 Lease (FSA), 5.00%, 12/01/34    14,150  13,539,993 
Banning Unified School District, California, GO, 2006       
 Election, Series A (MBIA), 5.00%, 8/01/27    2,825  2,788,699 
Bonita Unified School District, California, GO, Election       
 of 2004, Series B (MBIA), 5.00%, 8/01/29    8,350  8,184,586 
Cajon Valley Union School District, California, GO,       
 Series B (MBIA), 5.50%, 8/01/27    2,925  3,007,046 
Central Unified School District, GO, Election of 2008,       
 Series A (AGC), 5.63%, 8/01/33    2,600  2,630,732 
City of Garden Grove California, COP, Series A, Financing     
 Project (AMBAC), 5.50%, 3/01/26    4,040  4,150,736 
City of Lodi California, COP, Series A (FSA),       
 5.00%, 10/01/32    2,000  1,912,640 
City of Vista California, COP, Community Projects (MBIA),     
 5.00%, 5/01/37    6,750  5,867,033 
Coachella Valley Unified School District, California, GO,     
 Election, Series A (MBIA), 5.00%, 8/01/27    2,400  2,369,160 
Colton Joint Unified School District, GO, Series A (MBIA),     
 5.38%, 8/01/26    2,500  2,527,800 
Corona Department of Water & Power, COP (MBIA),       
 5.00%, 9/01/29    5,910  5,699,249 
Corona-Norca Unified School District, California, GO,       
 Election of 2006, Series A (FSA), 5.00%, 8/01/31    5,000  4,889,100 
County of Kern California, COP, Capital Improvement       
 Projects, Series A (AGC), 6.00%, 8/01/35    3,500  3,636,010 
County of San Diego California, COP, Refunding,       
 Edgemoor Project & Regional System (AMBAC),       
 5.00%, 2/01/29    1,500  1,435,170 
County of San Joaquin California, COP, County       
 Administration Building (MBIA), 5.00%, 11/15/30    5,530  5,062,051 
Covina-Valley Unified School District, California, GO,       
 Series A (FSA), 5.50%, 8/01/26    2,395  2,476,478 
Culver City Redevelopment Finance Authority, California,     
 TAN, Refunding, Tax Allocation, Series A (FSA),       
 5.60%, 11/01/25    3,750  3,832,913 
East Side Union High School District-Santa Clara       
 County, California, GO, CAB, Election of 2002, Series E     
 (Syncora), 5.12%, 8/01/28 (a)    11,000  3,127,520 
Foothill-De Anza Community College District, California,     
 GO, Refunding (MBIA), 5.00%, 8/01/30    5,000  4,904,450 
Fullerton Joint Union High School District, California,       
 GO, Election of 2002, Series B (MBIA), 5.00%, 8/01/29  5,200  5,108,428 
Hartnell Community College District, California, GO,       
 Election of 2002, Series B (FSA), 5.00%, 6/01/31    2,155  2,107,245 
Hemet Unified School District, California, GO, 2006       
 Election, Series B (AGC), 5.13%, 8/01/37    4,500  4,372,965 

    Par   
Municipal Bonds    (000)  Value 
     California (continued)       
County/City/Special District/School District (continued)     
La Quinta Financing Authority, TAN, Series A (AMBAC),     
 5.13%, 9/01/34  $ 4,665  $ 3,978,265 
Lompoc Unified School District, California, GO, Election     
 of 2002, Series C (FSA), 5.00%, 6/01/32    1,485  1,405,612 
Los Angeles Community Redevelopment Agency,       
 California, RB, Bunker Hill Project, Series A (FSA),       
 5.00%, 12/01/27    10,000  9,593,600 
Los Angeles County Metropolitan Transportation Authority,     
 RB, Property A First Tier Senior, Series A (AMBAC),       
 5.00%, 7/01/35    9,000  8,845,560 
Los Angeles Unified School District, California, GO:       
 Election of 2004, Series H (FSA), 5.00%, 7/01/32    5,000  4,860,250 
 Series D, 5.00%, 7/01/27    4,750  4,744,205 
Los Gatos Union School District, California, GO, Election     
 of 2001, Series B (FSA), 5.00%, 8/01/30    2,735  2,693,072 
Los Rios Community College District, California, GO,       
 Election of 2002, Series B (MBIA), 5.00%, 8/01/27  1,890  1,934,434 
Merced Community College District, California, GO,       
 School Facilities Improvement District No. 1 (MBIA),     
 5.00%, 8/01/31    6,365  6,126,694 
Moorpark Redevelopment Agency, California, TAN,       
 Moorpark Redevelopment Project (AMBAC),       
 5.13%, 10/01/31    4,150  3,458,901 
Morongo Unified School District, GO, Election of 2005,     
 Series B (AGC), 5.25%, 8/01/38    7,000  6,767,460 
Ohlone Community College District, GO, Ohlone, Series B     
 (FSA), 5.00%, 8/01/30    5,000  4,923,350 
Poway Unified School District, Special Tax (AMBAC),       
 5.00%, 9/15/31    9,070  8,161,095 
Redlands Unified School District, California, GO, Election     
 of 2008 (FSA), 5.25%, 7/01/33    5,000  5,003,300 
Redwoods Community College District, GO, Election       
 of 2004 (MBIA), 5.00%, 8/01/31    4,630  4,381,832 
Riverside Unified School District, California, GO, Election     
 of 2001, Series B (MBIA), 5.00%, 8/01/30    10,735  10,449,234 
Saddleback Valley Unified School District, California, GO     
 (FSA), 5.00%, 8/01/29    4,115  4,057,678 
Salinas Union High School District, California, GO, 2002     
 Election, Series B (MBIA), 5.00%, 6/01/26    3,490  3,481,903 
San Francisco Bay Area Transit Financing Authority,       
 Refunding RB, Series A (MBIA), 5.00%, 7/01/34    2,500  2,437,300 
San Francisco Community College District, California,       
 GO, Election of 2001, Series C (FSA), 5.00%, 6/15/31  4,195  4,101,955 
San Jose Evergreen Community College District,       
 California, GO, CAB, Election of 2004, Series A       
 (MBIA) (a):       
     5.17%, 9/01/24    10,410  4,220,526 
     5.34%, 9/01/29    7,250  1,997,448 
San Jose Financing Authority, RB, Civic Center Project,     
 Series B (AMBAC), 5.00%, 6/01/32    14,800  14,561,424 

     Portfolio Abbreviations         
To simplify the listings of portfolio holdings in each Fund’s  ACA  American Capital Access Corp.  GNMA  Government National Mortgage Association 
Schedule of Investments, the names and descriptions of  AGC  Assured Guaranty Corp.  GO  General Obligation Bonds 
many of the securities have been abbreviated according  AMBAC  American Municipal Bond Assurance Corp.  HDA  Housing Development Authority 
to the following list:  AMT  Alternative Minimum Tax (subject to)  HFA  Housing Finance Agency 
  BHAC  Berkshire Hathaway Assurance Corp.  IDA  Industrial Development Authority 
  CAB  Capital Appreciation Bonds  MBIA  Municipal Bond Investors Assurance 
  CIFG  CDC IXIS Financial Guaranty    (National Public Finance Guaranty Corp.) 
  COP  Certificates of Participation  RB  Revenue Bonds 
  EDA  Economic Development Authority  S/F  Single-Family 
  EDC  Economic Development Corp.  TAN  Tax Anticipation Notes 
  FGIC  Financial Guaranty Insurance Co.  VRDN  Variable Rate Demand Notes 
See Notes to Financial Statements.  FSA  Financial Security Assurance Inc.     

ANNUAL REPORT JULY 31, 2009 11

Schedule of Investments (continued) BlackRock MuniHoldings California Insured Fund, Inc. (MUC)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
     California (continued)       
County/City/Special District/School District (concluded)     
San Juan Unified School District, California, GO,       
 Election of 2002 (MBIA), 5.00%, 8/01/28  $ 4,250  $ 4,208,860 
San Mateo County Transportation District, California,       
 Refunding RB, Series A (MBIA), 5.00%, 6/01/29    5,650  5,761,249 
Sanger Unified School District, California, GO, Election     
 of 2006, Series A (FSA), 5.00%, 8/01/27    7,345  7,403,246 
Santa Clara Redevelopment Agency, California,       
 TAN, Bayshore North Project, Series A (AMBAC),       
 5.50%, 6/01/23    14,000  13,253,940 
Santa Monica-Malibu Unified School District,       
 California, GO, Election of 2006, Series A (MBIA),       
 5.00%, 8/01/32    5,000  4,840,700 
Santa Rosa High School District, California, GO, Election     
 of 2002 (MBIA), 5.00%, 8/01/28    2,855  2,827,364 
Sierra Joint Community College District, California, GO,     
 Improvement District 2, Western Nevada, Series A       
 (MBIA), 5.00%, 8/01/28    1,550  1,534,996 
Tamalpais Union High School District, California, GO,       
 Election of 2006 (MBIA), 5.00%, 8/01/28    4,400  4,402,552 
Tracy Area Public Facilities Financing Agency, California,     
 Special Tax, Refunding, Community Facilities District     
 No. 87, Series H (MBIA), 5.88%, 10/01/19    10,000  10,003,900 
Vista Unified School District, California, GO, Series B       
 (MBIA), 5.00%, 8/01/28    2,550  2,488,902 
Walnut Valley Unified School District, California, GO,       
 Election of 2007, Measure S, Series A (FSA),       
 5.00%, 2/01/33    2,000  1,935,560 
Washington Unified School District-Yolo County,       
 California, GO, CAB, Election of 2004, Series A       
 (MBIA), 5.07%, 8/01/29 (a)    6,075  1,661,027 
West Contra Costa Unified School District, California, GO,     
 Election of 2002:       
     Series B (FSA), 5.00%, 8/01/32    6,690  6,502,948 
     Series C (MBIA), 5.07%, 8/01/29 (a)    5,825  1,482,637 
West Contra Costa Unified School District, California, GO,     
 Election of 2005:       
     Series A (FSA), 5.00%, 8/01/26    2,595  2,620,431 
     Series B (BHAC), 5.63%, 8/01/35    3,500  3,690,715 
Westminster Redevelopment Agency, California, TAN,       
 Subordinate, Commercial Redevelopment Project       
 No. 1 (AGC), 6.25%, 11/01/39    4,300  4,465,980 
Yorba Linda Redevelopment Agency, California, TAN,       
 Subordinate Lien, Redevelopment Project, Series B       
 (AMBAC), 5.00%, 9/01/32    3,145  2,604,406 
      297,504,515 
Education — 7.7%       
California Educational Facilities Authority, RB, California     
 Institute of Technology, 5.00%, 11/01/39    2,200  2,222,704 
California State Public Works Board, RB, University       
 California, Institute Project, Series C (AMBAC),       
 5.00%, 4/01/30    5,000  4,583,450 
California State University, RB, Systemwide, Series A:       
     (AMBAC), 5.00%, 11/01/30    6,000  5,727,480 
     (FSA), 5.00%, 11/01/29    5,000  4,993,300 
     (FSA), 5.00%, 11/01/39    8,320  7,969,312 
Snowline Joint Unified School District, COP, Refinancing     
 Program (AGC), 5.75%, 9/01/38    5,635  5,729,555 
University of California, RB, General, Series A (AMBAC),     
 5.00%, 5/15/27    10,500  10,563,945 
      41,789,746 

  Par   
Municipal Bonds  (000)  Value 
     California (continued)     
Health — 6.8%     
ABAG Finance Authority for Nonprofit Corps, RB, Sharp     
 Healthcare, 6.25%, 8/01/39  $ 5,000  $ 4,986,550 
California Health Facilities Financing Authority,     
 California, RB, Catholic Healthcare West, Series A,     
 6.00%, 7/01/34  3,700  3,597,325 
California Statewide Communities Development     
 Authority, RB:     
     Adventist, Series B, Remarketed (AGC), 5.00%,     
     3/01/37  7,500  6,881,025 
     Health Facilities, Memorial Health Services, Series A,     
     6.00%, 10/1/2023  4,915  5,019,690 
     Kaiser Permanente, Series A, 5.00%, 4/01/31  900  813,816 
     Kaiser, Series C, Remarketed, 5.25%, 8/01/31  5,000  4,672,400 
     LA Orthopedic Hospital Foundation (AMBAC),     
     5.50%, 6/01/19  1,090  1,074,391 
     Sutter Health, Series C, Remarketed (FSA),     
     5.05%, 8/15/38  10,000  9,475,500 
    36,520,697 
Housing — 0.1%     
California Housing Finance Agency, RB, Class II     
 (MBIA), AMT:     
     S/F Mortgage, Series C-2, 5.63%, 8/01/20  335  333,834 
     Series A-1, 6.00%, 8/01/20  170  170,127 
    503,961 
State — 6.0%     
California Community College Financing Authority,     
 California, RB, Grossmont, Palomar, Shasta, Series A     
 (MBIA), 5.63%, 4/01/26  2,180  2,185,428 
California State Public Works Board, RB, Department     
 Education, Riverside Campus Project, Series B,     
 6.50%, 4/01/34  3,500  3,697,575 
California State University, RB, Systemwide, Series C     
 (MBIA), 5.00%, 11/01/28  16,215  15,764,547 
State of California, GO, Various Purpose,     
 6.50%, 4/01/33  10,000  10,811,200 
    32,458,750 
Transportation — 16.4%     
City of Fresno California, RB, Series B (FSA), AMT,     
 5.50%, 7/01/20  4,455  4,418,736 
City of Long Beach California, RB, Series B, Remarketed     
 (MBIA), AMT, 5.20%, 5/15/27  18,000  17,194,140 
County of Orange California, RB, Series B,     
 5.75%, 7/01/34  6,345  6,448,233 
County of Sacramento California, RB, Senior, Series B,     
 5.75%, 7/01/39  2,650  2,570,792 
Port of Oakland, RB (MBIA), AMT:     
     Series K, 5.75%, 11/01/29  19,660  18,366,372 
     Series L, 5.38%, 11/01/27  25,350  23,081,175 
San Francisco City & County Airports Commission,     
 Refunding RB, AMT:     
     Second Series A-3, 6.75%, 5/01/19  5,030  5,271,943 
     Second Series 34E (FSA), 5.75%, 5/01/24  5,000  5,088,900 
     Second Series, Issue 24A (FSA), 5.50%, 5/01/24  6,430  6,431,029 
    88,871,320 

See Notes to Financial Statements.

12 ANNUAL REPORT JULY 31, 2009

Schedule of Investments (continued) BlackRock MuniHoldings California Insured Fund, Inc. (MUC)
(Percentages shown are based on Net Assets)

  Par   
Municipal Bonds  (000)  Value 
     California (concluded)     
Utilities — 31.9%     
Chino Basin Regional Financing Authority, California,     
 RB, Inland Empire Utility Agency, Series A (AMBAC),     
 5.00%, 11/01/33  $ 3,675  $ 3,544,611 
City of Escondido California, COP, Series A (MBIA),     
 5.75%, 9/01/24  465  469,873 
City of Napa California, RB (AMBAC), 5.00%, 5/01/35  9,100  8,842,561 
City of Santa Clara California, RB, Sub-Series A (MBIA),     
 5.00%, 7/01/28  6,050  5,841,578 
East Bay Municipal Utility District, RB, Sub-Series A     
 (MBIA), 5.00%, 6/01/35  11,910  11,874,866 
East Bay Municipal Utility District, Refunding RB,     
 Sub-Series A (AMBAC):     
     5.00%, 6/01/33  6,545  6,544,542 
     5.00%, 6/01/37  14,515  14,363,318 
Los Angeles Department of Water & Power, RB, System     
 (AMBAC):     
     Sub-Series A-1, 5.00%, 7/01/36  4,385  4,258,493 
     Sub-Series A-2, 5.00%, 7/01/35  2,000  1,943,320 
Madera Public Financing Authority, California, RB (MBIA),     
 5.00%, 3/01/36  2,000  1,824,700 
Metropolitan Water District of Southern California, RB:     
 Authority, Series B-1 (MBIA), 5.00%, 10/01/33  9,000  9,046,440 
 Series A (FSA), 5.00%, 7/01/35  3,550  3,564,271 
Oxnard Financing Authority, RB (MBIA):     
     5.00%, 6/01/31  10,000  9,740,100 
     Redwood Trunk Sewer & Headworks, Series A,     
     5.25%, 6/01/34  10,000  9,546,900 
Sacramento City Financing Authority, California,     
 Refunding RB (MBIA), 5.00%, 12/01/29  8,775  8,774,386 
Sacramento Municipal Utility District, RB, Cosumnes     
 Project (MBIA), 5.13%, 7/01/29  36,760  35,708,664 
Sacramento Regional County Sanitation District, RB     
 (MBIA), 5.00%, 12/01/36  4,500  4,312,170 
San Diego County Water Authority, COP, Series A (MBIA),     
 5.00%, 5/01/32  10,000  9,812,700 
San Francisco City & County Public Utilities     
 Commission, RB, Series A (MBIA), 5.00%, 11/01/32  13,500  13,031,145 
Stockton Public Financing Authority, California, RB,     
 Water System Capital Improvement Projects, Series A     
 (MBIA), 5.00%, 10/01/31  3,200  2,904,864 
Turlock Public Financing Authority, California, RB,     
 Series A (MBIA), 5.00%, 9/15/33  6,655  6,419,679 
    172,369,181 
Total Municipal Bonds in California    672,486,530 
     Puerto Rico — 1.9%     
County/City/Special District/School District — 1.9%     
Puerto Rico Sales Tax Financing Corp., RB, First     
 Sub-Series A, 6.50%, 8/01/44  10,000  10,471,500 
Total Municipal Bonds in Puerto Rico    10,471,500 
Total Municipal Bonds — 126.4%    682,958,030 

Municipal Bonds Transferred to    Par   
Tender Option Bond Trusts (b)    (000)  Value 
County/City/Special District/School District — 16.9%     
Contra Costa Community College District, California, GO,     
 Election 2002 (MBIA), 5.00%, 8/01/28    $ 7,800  $ 7,803,432 
Chaffey Community College District, GO, Election 2002,     
 Series B (MBIA), 5.00%, 6/01/30    9,905  9,753,002 
Los Angeles Community College District, California, GO:     
Election 2003, Series E (FSA), 5.00%, 8/01/31  11,216  10,796,015 
     Election 2008, Series A, 6.00%, 8/01/33    9,596  10,325,918 
Peralta Community College District, California, GO (FSA):     
     5.00%, 8/01/32    6,980  6,784,839 
     Election 2000, Series D, 5.00%, 8/01/35    15,490  14,859,247 
Riverside Community College District, GO, Election 2004,     
 Series C (MBIA), 5.00%, 8/01/32    8,910  8,660,876 
San Diego Community College District, California, GO,     
 Election of 2002 (FSA), 5.00%, 5/01/30    12,549  12,356,954 
Vista Unified School District, California, GO, Series A     
 (FSA), 5.00%, 8/01/25    10,016  10,201,546 
      91,541,829 
Education — 7.2%       
Poway Unified School District, GO, Election 2002,       
 Improvement District No. 02, Series 1B (FSA),       
 5.00%, 8/01/30    10,000  9,846,700 
University of California, RB, Limited Project, Series B     
 (FSA), 5.00%, 5/15/33    17,400  17,042,952 
University of California, RB, Series O, 5.75%, 5/15/34  11,190  12,020,746 
      38,910,398 
Transportation — 4.3%       
San Francisco Bay Area Transit Financing Authority,       
 Refunding RB, Series A (MBIA), 5.00%, 7/01/30  23,100  23,009,910 
Utilities — 5.6%       
Los Angeles Department of Water & Power, RB, Power     
 System, Sub-Series A1 (FSA), 5.00%, 7/01/31    4,993  4,959,386 
Rancho Water District Financing Authority, California, RB,     
 Refunding, Series A (FSA), 5.00%, 8/01/34    5,008  4,882,646 
San Diego County Water Authority, COP, Series A (FSA):     
     5.00%, 5/01/31    4,000  3,957,840 
     Series 2008, 5.00%, 5/01/33    16,740  16,396,830 
      30,196,702 
Total Municipal Bonds Transferred to       
Tender Option Bond Trusts — 34.0%      183,658,839 
Total Long-Term Investments       
(Cost — $903,186,292) — 160.4%      866,616,869 
Short-Term Securities    Shares   
CMA California Municipal Money Fund,       
 0.04% (c)(d)  20,500,814  20,500,814 
Total Short-Term Securities       
(Cost — $20,500,814) — 3.8%      20,500,814 
Total Investments (Cost — $923,687,106*) — 164.2%    887,117,683 
Other Assets Less Liabilities — 2.3%      12,374,564 
Liability for Trust Certificates, Including Interest       
   Expense and Fees Payable — (19.5)%      (105,328,702) 
Preferred Shares, at Redemption Value — (47.0)%    (254,019,184) 
Net Assets Applicable to Common Shares — 100.0%    $540,144,361 

See Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2009 13

Schedule of Investments (concluded) BlackRock MuniHoldings California Insured Fund, Inc. (MUC)

* The cost and unrealized appreciation (depreciation) of investments as of July 31, 
     2009, as computed for federal income tax purposes, were as follows: 
     Aggregate cost    $819,027,206 
     Gross unrealized appreciation    $ 5,289,659 
     Gross unrealized depreciation    (42,402,086) 
     Net unrealized depreciation    $ (37,112,427) 
(a) Represents a zero-coupon bond. Rate shown reflects the current yield as of 
     report date.     
(b) Securities represent bonds transferred to a tender option bond trust in exchange for 
     which the Fund acquired residual interest certificates. These securities serve as col- 
     lateral in a financing transaction. See Note 1 of the Notes to Financial Statements 
     for details of municipal bonds transferred to tender option bond trusts. 
(c) Investments in companies considered to be an affiliate of the Fund, for purposes of 
     Section 2(a)(3) of the Investment Company Act of 1940, were as follows: 
    Net   
     Affiliate  Activity  Income 
     CMA California Municipal Money Fund  (23,099,435)  $1,031 
(d) Represents the current yield as of report date.     
• Financial Accounting Standards Board Statement of Financial Accounting Standards 
     No. 157, “Fair Value Measurements” clarifies the definition of fair value, establishes a 
     framework for measuring fair values and requires additional disclosures about the 
     use of fair value measurements. Various inputs are used in determining the fair value 
     of investments, which are as follows:     
     •   Level 1 — price quotations in active markets/exchanges for identical securities 
     •   Level 2 — other observable inputs (including, but not limited to: quoted prices for 
   similar assets or liabilities in markets that are active, quoted prices for identical 
   or similar assets or liabilities in markets that are not active, inputs other than 
   quoted prices that are observable for the assets or liabilities (such as interest 
   rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and 
   default rates) or other market-corroborated inputs)   
     •   Level 3 — unobservable inputs based on the best information available in the 
   circumstances, to the extent observable inputs are not available (including the 
   Fund’s own assumptions used in determining the fair value of investments) 
     The inputs or methodology used for valuing securities are not necessarily an 
     indication of the risk associated with investing in those securities. For information 
     about the Fund’s policy regarding valuation of investments and other significant 
     accounting policies, please refer to Note 1 of the Notes to Financial Statements. 
     The following table summarizes the inputs used as of July 31, 2009 in determining 
     the fair valuation of the Fund’s investments:     
     Valuation    Investments in 
     Inputs    Securities 
      Assets 
     Level 1 — Short-Term Securities  $ 20,500,814 
     Level 2 — Long-Term Investments1    866,616,869 
     Level 3    — 
     Total  $ 887,117,683 
  1 See above Schedule of Investments for values in each sector.   

See Notes to Financial Statements.

14 ANNUAL REPORT JULY 31, 2009

Schedule of Investments July 31, 2009 BlackRock MuniHoldings New Jersey Insured Fund, Inc. (MUJ)
(Percentages shown are based on Net Assets)

  Par   
Municipal Bonds  (000)  Value 
     New Jersey — 142.2%     
Corporate — 0.8%     
New Jersey EDA, RB, Disposal, Waste Management     
 New Jersey, Series A, AMT, 5.30%, 6/01/15  $ 2,500  $ 2,496,650 
County/City/Special District/School District — 26.8%     
Camden County Improvement Authority, RB (FSA),     
 5.50%, 9/01/10 (a)  1,540  1,623,760 
City of Perth Amboy, New Jersey, GO, CAB (FSA) (b):     
     5.47%, 7/01/32  4,605  3,872,667 
     5.46%, 7/01/33  1,395  1,161,435 
     4.99%, 7/01/37  1,470  1,193,772 
County of Middlesex, New Jersey, COP (MBIA):     
     5.50%, 8/01/16  1,375  1,478,084 
     5.25%, 6/15/23  1,550  1,551,860 
East Orange Board of Education, COP (FSA),     
 5.50%, 8/01/12  7,895  8,384,332 
Essex County Improvement Authority, RB, Guaranteed,     
 County Correctional Facilities Project (FGIC),     
 6.00%, 10/01/10 (a)  4,000  4,250,200 
Essex County Improvement Authority, RB, Guaranteed     
 Lease, County Correctional, Series A (FGIC),     
 5.00%, 10/01/13 (a)  4,400  5,050,408 
Hopatcong Boro New Jersey, GO, Refunding, Sewer     
 (AMBAC), 4.50%, 8/01/33  2,690  2,624,418 
Hudson County Improvement Authority, RB, County,     
 Guaranteed, Harrison Parking Facilities Project,     
 Series C (AGC), 5.38%, 1/01/44  3,600  3,688,560 
Lafayette Yard Community Development Corp.,     
 New Jersey, RB, Hotel, Conference Center Project,     
 Trenton Guaranteed (MBIA), 6.00%, 4/01/10 (a)  5,250  5,486,565 
Middlesex County Improvement Authority, RB,     
 Guaranteed, Senior Citizens Housing Project, AMT     
 (AMBAC), 5.50%, 9/01/30  500  470,855 
Monmouth County Improvement Authority, RB,     
 Governmental Loan (AMBAC):     
     5.35%, 12/01/10 (a)  695  739,153 
     5.38%, 12/01/10 (a)  535  569,165 
     5.35%, 12/01/17  845  886,675 
     5.38%, 12/01/18  935  981,572 
Morristown Parking Authority, RB, Guaranteed (MBIA):     
     5.00%, 8/01/30  1,830  1,878,531 
     5.00%, 8/01/33  3,000  3,043,440 
New Jersey State Transit Corp., COP, Subordinate,     
 Federal Transit Admin Grants, Series A-FS (FSA),     
 5.00%, 9/15/21  2,000  2,057,320 
Newark Housing Authority, Refunding RB, Additional,     
 Newark Redevelopment Project (MBIA),     
 4.38%, 1/01/37  620  530,856 
North Bergen Township Board of Education, COP     
 (FSA) (a):     
     6.00%, 12/15/10  1,000  1,083,970 
     6.25%, 12/15/10  3,260  3,544,858 
Paterson Public School District, New Jersey, COP     
 (MBIA) (a):     
     6.13%, 11/01/09  1,980  2,028,668 
     6.25%, 11/01/09  2,000  2,049,800 
Salem County Improvement Authority, RB, Finlaw State     
 Office Building (FSA), 5.38%, 8/15/28  500  528,190 
South Jersey Port Corp., Refunding RB:     
     4.50%, 1/01/15  3,750  3,960,038 
     4.50%, 1/01/16  1,920  2,010,278 

Municipal Bonds    (000)  Value 
     New Jersey (continued)       
County/City/Special District/School District (concluded)     
Township of West Deptford New Jersey, GO (FGIC),     
 5.63%, 9/01/10 (a)  $ 8,580  $ 9,058,249 
Trenton Parking Authority, RB, Parking Bonds (FGIC),     
 6.10%, 4/01/10 (a)    6,000  6,223,740 
      82,011,419 
Education — 16.1%       
New Jersey EDA, RB, International Center For Public     
Health Project, University of Medicine & Dentistry     
 (AMBAC), 6.00%, 6/01/32    5,000  4,544,350 
New Jersey Educational Facilities Authority, RB:     
     Montclair State University, Series A (AMBAC)     
     5.00%, 7/01/21    1,200  1,236,360 
     Montclair State University, Series A (AMBAC)     
     5.00%, 7/01/22    2,880  2,944,915 
     Rowan University, Series C (FGIC),       
     5.25%, 7/01/11 (a)    240  263,218 
     Rowan University, Series C (FGIC),       
     5.25%, 7/01/11 (a)    285  312,571 
     Rowan University, Series C (FGIC),       
     5.25%, 7/01/11 (a)    265  290,636 
     Rowan University, Series C (MBIA),       
     5.00%, 7/01/14 (a)    3,260  3,714,118 
     Rowan University, Series C (MBIA),       
     5.13%, 7/01/14 (a)    3,615  4,139,609 
     Rowan University, Series C (MBIA), 5.25%, 7/01/17  2,135  2,279,902 
     Rowan University, Series C (MBIA), 5.25%, 7/01/18  2,535  2,702,107 
     Rowan University, Series C (MBIA), 5.25%, 7/01/19  2,370  2,486,841 
New Jersey Educational Facilities Authority,       
 Refunding RB:       
     College of New Jersey, Series D (FSA),       
     5.00%, 7/01/35    9,540  9,718,303 
     Montclair State University, Series J (MBIA),     
     4.25%, 7/01/30    3,775  3,268,773 
     Ramapo College, Series I (AMBAC),       
     4.25%, 7/01/31    1,250  1,074,038 
     Ramapo College, Series I (AMBAC),       
     4.25%, 7/01/36    900  739,737 
     Stevens Institute Technology, Series A,       
     5.00%, 7/01/27    2,800  2,553,768 
     Stevens Institute Technology, Series A,       
     5.00%, 7/01/34    900  768,861 
University of Medicine & Dentistry of New Jersey,     
 New Jersey:       
     COP (MBIA), 5.00%, 6/15/29    2,000  1,825,760 
     RB, Series A (AMBAC), 5.50%, 12/01/27  4,740  4,413,461 
      49,277,328 
Health — 13.1%       
New Jersey Health Care Facilities Financing Authority, RB:     
     Atlantic City Medical, 5.75%, 7/01/12 (a)  1,525  1,715,320 
     Atlantic City Medical, 6.25%, 7/01/12 (a)  530  603,697 
     Atlantic City Medical, 6.25%, 7/01/17    925  974,432 
     Atlantic City Medical, 5.75%, 7/01/25    1,975  1,998,088 
     Greystone Park Psychiatric Hospital (AMBAC),     
     5.00%, 9/15/23    10,775  10,752,803 
     Meridian Health, Series II (AGC), 5.00%, 7/01/38  7,400  7,299,434 
     Meridian Health System Obligation Group (FSA),     
     5.38%, 7/01/24    1,000  1,002,300 
     Society of The Valley Hospital (AMBAC),       
     5.38%, 7/01/25    2,820  2,523,533 
     Somerset Medical Center, 5.50%, 7/01/33  2,135  1,167,269 
     South Jersey Hospital, 6.00%, 7/01/12 (a)  5,440  6,191,209 
     Virtua Health (AGC), 5.50%, 7/01/38    1,000  998,510 

See Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2009 15

Schedule of Investments (continued) BlackRock MuniHoldings New Jersey Insured Fund, Inc. (MUJ)
(Percentages shown are based on Net Assets)

  Par   
Municipal Bonds  (000)  Value 
     New Jersey (continued)     
Health (concluded)     
New Jersey Health Care Facilities Financing Authority,     
 Refunding RB, Series AHS Hospital Corp., Series A     
 (AMBAC), 6.00%, 7/01/13 (c)  $ 4,000  $ 4,675,480 
    39,902,075 
Housing — 7.2%     
New Jersey State Housing & Mortgage Finance     
 Agency, RB:     
     Capital Fund Program, Series A (FSA),     
     4.70%, 11/01/25  10,840  10,717,942 
     Home Buyer, Series U (MBIA), AMT,     
     5.60%, 10/01/12  700  701,722 
     Home Buyer, Series U (MBIA), AMT,     
     5.65%, 10/01/13  2,075  2,080,312 
     Home Buyer, Series U (MBIA), AMT,     
     5.75%, 4/01/18  2,325  2,328,023 
     Home Buyer, Series U (MBIA), AMT,     
     5.85%, 4/01/29  610  610,287 
     S/F Housing, Series T, AMT, 4.70%, 10/01/37  800  689,312 
     Series AA, 6.50%, 10/01/38  3,370  3,584,838 
Newark Housing Authority, RB, South Ward Police     
 Facility (AGC):     
     5.75%, 12/01/30  850  857,837 
     6.75%, 12/01/38  500  534,075 
    22,104,348 
State — 51.7%     
Garden State Preservation Trust, RB (FSA):     
     2005 Series A, 5.80%, 11/01/21  1,960  2,233,537 
     2005 Series A, 5.80%, 11/01/23  2,730  3,081,678 
     CAB, Series B, 5.12%, 11/01/23 (d)  9,000  4,638,510 
     CAB, Series B, 5.20%, 11/01/25 (d)  10,000  4,568,100 
Garden State Preservation Trust, Refunding RB,     
 Series C (FSA):     
     5.25%, 11/01/20  5,000  5,855,900 
     5.25%, 11/01/21  7,705  8,989,963 
New Jersey EDA, RB:     
     Cigarette Tax, 5.63%, 6/15/19  2,700  2,507,301 
     Cigarette Tax (Radian), 5.75%, 6/15/29  2,000  1,663,800 
     Cigarette Tax (Radian), 5.50%, 6/15/31  585  466,461 
     Cigarette Tax (Radian), 5.75%, 6/15/34  1,180  950,903 
     Liberty State Park Project, Series C (FSA),     
     5.00%, 3/01/22  2,670  2,810,228 
     Motor Vehicle Surcharge, Series A (MBIA),     
     5.25%, 7/01/26  7,500  7,799,175 
     Motor Vehicle Surcharge, Series A (MBIA),     
     5.25%, 7/01/33  11,105  10,795,059 
     Motor Vehicle Surcharge, Series A (MBIA),     
     5.00%, 7/01/34  2,000  1,932,740 
     School Facilities Construction, Series L (FSA),     
     5.00%, 3/01/30  9,000  9,166,230 
     School Facilities Construction, Series O,     
     5.25%, 3/01/23  4,420  4,601,794 
     School Facilities Construction, Series U (AMBAC),     
     5.00%, 9/01/37  2,500  2,422,900 
     School Facilities Construction, Series Z (AGC),     
     6.00%, 12/15/34  2,800  3,051,692 
     State Office Buildings Projects (AMBAC),     
     6.00%, 6/15/10 (a)  3,000  3,147,030 
     State Office Buildings Projects (AMBAC),     
     6.25%, 6/15/10 (a)  4,620  4,856,498 

    Par   
Municipal Bonds    (000)  Value 
     New Jersey (continued)       
State (concluded)       
New Jersey EDA, Refunding RB, School Facilities       
 Construction, Series N-1 (MBIA), 5.50%, 9/01/27  $ 1,000  $ 1,057,790 
New Jersey Educational Facilities Authority, RB, Series A:     
     Capital Improvement Fund, (FSA),       
     5.75%, 9/01/10 (a)    9,420  9,946,107 
     Higher Education Capital Improvement,       
     (AMBAC), 5.13%, 9/01/12 (a)    5,500  6,188,380 
New Jersey Sports & Exposition Authority, RB, Series A     
 (MBIA), 6.00%, 3/01/13    2,400  2,464,848 
New Jersey Sports & Exposition Authority, Refunding       
 RB (MBIA):       
     5.50%, 3/01/21    5,890  6,410,853 
     5.50%, 3/01/22    3,000  3,241,320 
New Jersey Transportation Trust Fund Authority,       
 New Jersey, RB, Transportation System:       
     CAB, Series C (AMBAC), 5.05%, 12/15/35 (d)    1,400  241,248 
     CAB, Series C (AMBAC), 5.05%, 12/15/36 (d)    5,500  888,965 
     CAB, Series C (FSA), 4.72%, 12/15/32 (d)    4,050  947,255 
     Series A, 6.00%, 6/15/10 (a)    7,500  7,867,575 
     Series A (AGC), 5.63%, 12/15/28    2,000  2,129,460 
     Series A (FSA), 5.25%, 12/15/20    10,750  11,919,923 
     Series B (MBIA), 5.50%, 12/15/21    9,165  9,993,058 
     Series D (FSA), 5.00%, 6/15/19    7,800  8,341,086 
State of New Jersey, COP, Equipment Lease Purchase,     
 Series A, 5.25%, 6/15/27    1,080  1,088,208 
      158,265,575 
Tobacco — 1.9%       
Tobacco Settlement Financing Corp., New Jersey, RB,       
 7.00%, 6/01/13 (a)    4,755  5,769,146 
Transportation — 20.4%       
Delaware River Port Authority Pennsylvania       
 & New Jersey, RB (FSA):       
     5.50%, 1/01/12    5,000  5,080,350 
     5.63%, 1/01/13    6,000  6,097,740 
     5.75%, 1/01/15    500  508,550 
     6.00%, 1/01/18    4,865  4,956,121 
     6.00%, 1/01/19    5,525  5,570,747 
Delaware River Port Authority, RB, Port District Project,     
 Series B (FSA), 5.63%, 1/01/26    2,425  2,430,068 
New Jersey State Turnpike Authority, RB:       
     Balance, Series C-2005 (MBIA), 6.50%, 1/01/16  910  1,088,169 
     Growth & Income Securities, Series B (AMBAC),       
     6.14%, 1/01/35 (b)    7,615  5,465,286 
     Series C (MBIA), 6.50%, 1/01/16 (c)    4,355  5,044,266 
     Series C-2005 (MBIA), 6.50%, 1/01/16 (c)    255  320,800 
New Jersey Transportation Trust Fund Authority,       
 New Jersey, RB, Transportation System:       
     Series A (AMBAC), 5.00%, 12/15/32    1,425  1,429,760 
     Series C, 5.50%, 6/15/13 (a)    780  904,114 
Port Authority of New York & New Jersey, RB, AMT:       
     Consolidated, 152nd, 5.75%, 11/01/30    5,175  5,347,949 
     Special Project, JFK International Air Terminal, 6       
     (MBIA), 6.25%, 12/01/11    13,500  13,891,095 
     Special Project, JFK International Air Terminal, 6       
     (MBIA), 6.25%, 12/01/15    1,500  1,524,090 
     Special Project, JFK International Air Terminal, 6       
     (MBIA), 5.75%, 12/01/25    3,000  2,662,110 
      62,321,215 

See Notes to Financial Statements.

16 ANNUAL REPORT JULY 31, 2009

Schedule of Investments (continued) BlackRock MuniHoldings New Jersey Insured Fund, Inc. (MUJ)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
     New Jersey (concluded)       
Utilities — 4.2%       
Atlantic Highlands Highland Regional Sewage Authority,     
 Refunding RB (MBIA), 5.50%, 1/01/20  $ 1,875  $ 1,958,269 
Essex County Utilities Authority, Refunding RB (AGC),       
 4.13%, 4/01/22    2,000  1,948,820 
New Jersey EDA, RB, Series A, New Jersey, American       
 Water (AMBAC), AMT, 5.25%, 11/01/32    3,000  2,582,010 
North Hudson Sewerage Authority, Refunding RB,       
 Series A (MBIA), 5.13%, 8/01/20    4,335  4,203,910 
Rahway Valley Sewerage Authority, RB, CAB, Series A       
 (MBIA), 4.79%, 9/01/28 (d)    6,600  2,248,092 
      12,941,101 
Total Municipal Bonds in New Jersey      435,088,857 
     Puerto Rico — 9.2%       
Health — 1.2%       
Puerto Rico Industrial Tourist Educational Medical       
 & Environmental Control Facilities Financing Authority,     
 RB, Series A:       
     Hospital Auxilio Mutuo Obligation Group (MBIA),       
     6.25%, 7/01/24    1,780  1,780,356 
     Hospital De La Concepcion, Series A,       
     6.50%, 11/15/20    1,750  1,793,838 
      3,574,194 
Housing — 2.1%       
Puerto Rico HFA, RB, Subordinate, Capital Fund       
 Modernization, 5.13%, 12/01/27    6,285  6,291,914 
State — 0.8%       
Puerto Rico Infrastructure Financing Authority, RB, CAB,     
 Series A (AMBAC), 4.36%, 7/01/37 (d)    4,000  454,760 
Puerto Rico Public Buildings Authority, Refunding RB,       
 Government Facilities, Series M-3 (MBIA),       
 6.00%, 7/01/27    2,125  2,101,901 
      2,556,661 
Transportation — 1.7%       
Puerto Rico Highway & Transportation Authority,       
 Refunding RB, Series CC (AGC), 5.50%, 7/01/31    5,000  5,228,050 
Utilities — 3.4%       
Puerto Rico Aqueduct & Sewer Authority, RB, Senior Lien,     
 Series A (AGC), 5.13%, 7/01/47    6,870  6,591,834 
Puerto Rico Electric Power Authority, RB, Series RR       
 (CIFG), 5.00%, 7/01/28    4,100  3,779,093 
      10,370,927 
Total Municipal Bonds in Puerto Rico      28,021,746 
Total Municipal Bonds — 151.4%      463,110,603 

Municipal Bonds Transferred to    Par     
Tender Option Bond Trusts (e)    (000)    Value 
     New Jersey — 7.1%         
Housing — 1.6%         
New Jersey State Housing & Mortgage Finance         
 Agency, RB, Capital Fund Program, Series A (FSA),         
 5.00%, 5/01/27  $ 4,790  $ 5,030,698 
State — 3.6%         
Garden State Preservation Trust, RB, 2005 Series A         
 (FSA), 5.75%, 11/01/28    9,160    10,846,356 
Transportation — 1.9%         
Port Authority of New York & New Jersey, Refunding RB,       
 Consolidated, 152nd Series, AMT, 5.25%, 11/01/35  5,998    5,871,870 
Total Municipal Bonds Transferred to         
Tender Option Bond Trusts — 7.1%        21,748,924 
Total Long-Term Investments         
(Cost — $480,546,184) — 158.5%      484,859,527 
Short-Term Securities    Shares     
CMA New Jersey Municipal Money Fund,         
 0.07% (f)(g)  3,311,943    3,311,943 
Total Short-Term Securities         
(Cost — $3,311,943) — 1.1%        3,311,943 
Total Investments (Cost — $483,858,127*) — 159.6%    488,171,470 
Other Assets Less Liabilities — 1.2%        3,698,613 
Liability for Trust Certificates, Including Interest         
   Expense and Fees Payable — (4.3)%        (13,300,999) 
Preferred Shares, at Redemption Value — (56.5)%      (172,712,796) 
Net Assets Applicable to Common Shares — 100.0%      $305,856,288 
   * The cost and unrealized appreciation (depreciation) of investments as of July 31, 
       2009, as computed for federal income tax purposes, were as follows:   
       Aggregate cost      $471,147,026 
       Gross unrealized appreciation      $ 17,665,823 
       Gross unrealized depreciation        (13,904,309) 
       Net unrealized appreciation      $ 3,761,514 
(a) US government securities, held in escrow, are used to pay interest on this security, 
       as well as to retire the bond in full at the date indicated, typically at a premium 
       to par.         
(b) Represents a step-up bond that pays an initial coupon rate for the first period and 
       then a higher coupon rate for the following periods. Rate shown is as of report date. 
 (c) Security is collateralized by Municipal or US Treasury Obligations.     
(d) Represents a zero-coupon bond. Rate shown reflects the current yield as of 
       report date.         
(e) Securities represent bonds transferred to a tender option bond trust in exchange for 
which the Fund acquired residual interest certificates. These securities serve as col- 
       lateral in a financing transaction. See Note 1 of the Notes to Financial Statements 
       for details of municipal bonds transferred to tender option bond trusts. 
(f) Investments in companies considered to be an affiliate of the Fund, for purposes of 
       Section 2(a)(3) of the Investment Company Act of 1940, were as follows: 
       Affiliate  Net Activity    Income 
       CMA New Jersey Municipal Money Fund  (6,438,963)    $61,733 
 (g) Represents the current yield as of report date.         

See Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2009 17

Schedule of Investments (concluded) BlackRock MuniHoldings New Jersey Insured Fund, Inc. (MUJ)

•  Effective August 1, 2008, the Fund adopted Financial Accounting Standards Board 
  Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” 
  (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for 
  measuring fair values and requires additional disclosures about the use of fair value 
  measurements. Various inputs are used in determining the fair value of investments, 
  which are as follows:   
  •   Level 1 — price quotations in active markets/exchanges for identical securities 
  •   Level 2 — other observable inputs (including, but not limited to: quoted prices for 
     similar assets or liabilities in markets that are active, quoted prices for identical 
     or similar assets or liabilities in markets that are not active, inputs other than 
     quoted prices that are observable for the assets or liabilities (such as interest 
     rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and 
     default rates) or other market-corroborated inputs)   
  •   Level 3 — unobservable inputs based on the best information available in the 
     circumstances, to the extent observable inputs are not available (including the 
     Fund’s own assumptions used in determining the fair value of investments) 
  The inputs or methodology used for valuing securities are not necessarily an 
  indication of the risk associated with investing in those securities. For information 
  about the Fund’s policy regarding valuation of investments and other significant 
  accounting policies, please refer to Note 1 of the Notes to Financial Statements. 
  The following table summarizes the inputs used as of July 31, 2009 in determining 
  the fair valuation of the Fund’s investments:   
  Valuation  Investments in 
  Inputs  Securities 
      Assets 
  Level 1 — Short-Term Securities  $ 3,311,943 
  Level 2 — Long-Term Investments1  484,859,527 
  Level 3  — 
  Total  $ 488,171,470 
    1 See above Schedule of Investments for values in each sector.   

See Notes to Financial Statements.

18 ANNUAL REPORT JULY 31, 2009

Schedule of Investments July 31, 2009 BlackRock MuniYield Insured Investment Fund (MFT)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
     California — 2.2%       
Transportation — 1.2%       
County of Sacramento California, RB, Senior, Series A     
 (AGC), 5.50%, 7/01/41  $ 1,400  $ 1,349,026 
Utilities — 1.0%       
San Diego Public Facilities Financing Authority, RB,       
 Series B (AGC), 5.38%, 8/01/34    1,020  1,040,961 
Total Municipal Bonds in California      2,389,987 
     Colorado — 1.3%       
Health — 1.3%       
Colorado Health Facilities Authority, RB, Hospital,       
 NCMC Inc. Project, Series B (FSA), 6.00%, 5/15/26  1,300  1,351,558 
Total Municipal Bonds in Colorado      1,351,558 
     Florida — 74.9%       
County/City/Special District/School District — 24.7%     
City of Jacksonville Florida, Refunding RB       
 & Improvement (MBIA), 5.25%, 10/01/32    1,455  1,452,948 
City of Orlando Florida, RB, Senior, 6th Central Contract     
 Payments, Series A (AGC), 5.25%, 11/01/38    2,000  1,961,720 
County of Lee Florida, RB (AMBAC), 5.25%, 10/01/23  2,285  2,300,218 
County of Miami-Dade Florida, RB, CAB,       
 Sub-Series A (MBIA) (a):       
     5.19%, 10/01/31    4,375  932,006 
     5.20%, 10/01/33    5,735  1,049,333 
County of Orange Florida, Refunding RB:       
     (AMBAC), 5.00%, 10/01/29    2,190  2,189,847 
     Series A (MBIA), 5.13%, 1/01/23    1,000  1,017,650 
County of Osceola Florida, RB, Series A (MBIA),       
 5.50%, 10/01/27    1,100  1,111,990 
County of Palm Beach Florida, RB (MBIA),       
 7.20%, 6/01/15    1,500  1,807,755 
Jacksonville Economic Development Commission, RB,     
 Metropolitan Parking Solutions Project (ACA), AMT,       
 5.50%, 10/01/30    1,140  875,098 
Miami-Dade County IDA, RB, BAC Funding Corp. Project,     
 Series A (AMBAC), 5.38%, 10/01/30    1,655  1,664,185 
Palm Beach County School Board, Florida, COP,       
 Series D (FSA), 5.25%, 8/01/21    2,000  2,095,380 
Santa Rosa County School Board, COP, Series 2       
 (MBIA), 5.25%, 2/01/26    2,000  2,038,560 
Village Center Community Development District       
 Recreational Revenue, RB, Series A (MBIA):       
     5.38%, 11/01/34    1,640  1,385,669 
     5.13%, 11/01/36    1,000  805,740 
Village Center Community Development District Utility     
 Revenue, RB (MBIA):       
     5.25%, 10/01/23    1,335  1,242,645 
     5.13%, 10/01/28    3,030  2,798,296 
      26,729,040 
Education — 7.3%       
Broward County Educational Facilities Authority, RB,       
 Educational Facilities, Nova Southeastern (AGC),       
 5.00%, 4/01/31    1,720  1,647,451 
Orange County Educational Facilities Authority, RB,       
 Rollins College Project (AMBAC), 5.50%, 12/01/32  4,765  4,577,164 
Volusia County IDA, RB, Student Housing, Stetson       
 University Project, Series A (CIFG):       
     5.00%, 6/01/25    1,000  908,130 
     5.00%, 6/01/35    1,000  805,300 
      7,938,045 

    Par   
Municipal Bonds    (000)  Value 
     Florida (concluded)       
Health — 3.7%       
Jacksonville Economic Development Commission, RB,     
 Mayo Clinic, Series B (MBIA), 5.50%, 11/15/36  $ 750  $ 755,085 
Jacksonville Health Facilities Authority, RB, Baptist       
 Medical Center (FSA), 5.00%, 8/15/37    200  191,006 
Orange County Health Facilities Authority, RB, Hospital,     
 Orlando Regional Healthcare, 6.00%, 12/01/12 (b)  1,835  2,129,774 
South Lake County Hospital District, RB, South Lake       
 Hospital Inc., 5.80%, 10/01/34    1,000  911,440 
      3,987,305 
Housing — 2.3%       
Florida HFA, RB, Housing, Brittany Rosemont Apartments,     
 Series C-1 (AMBAC), AMT, 6.75%, 8/01/14    780  781,271 
Florida Housing Finance Corp., RB, Homeowner       
 Mortgage (FSA), AMT:       
     Series 4, 6.25%, 7/01/22    245  253,007 
     Series 11, 5.95%, 1/01/32    1,505  1,507,152 
      2,541,430 
State — 6.1%       
Florida State Board of Education, RB, Series A (FGIC),     
 6.00%, 7/01/10 (b)    6,190  6,569,075 
Transportation — 18.2%       
County of Lee Florida, RB, Series A (FSA), AMT,       
 6.00%, 10/01/29    1,000  1,004,530 
County of Miami-Dade Florida, RB, Series A, AMT:       
     (FSA), 5.00%, 10/01/33    5,555  4,749,914 
     Miami International Airport (FSA), 5.25%, 10/01/41  1,200  1,036,032 
     Miami International Airport (FSA), 5.50%, 10/01/41  2,400  2,154,888 
     Miami International Airport (MBIA),       
     6.00%, 10/01/24    2,750  2,770,955 
Hillsborough County Aviation Authority, Florida, RB,       
 Series C, AMT (AGC), 5.75%, 10/01/26    1,000  1,014,130 
Jacksonville Port Authority, RB, AMT:       
     (AGC), 6.00%, 11/01/38    700  681,128 
     (MBIA), 5.63%, 11/01/26    1,225  1,200,390 
Miami-Dade County Expressway Authority, Florida, RB,     
 Series B (MBIA), 5.25%, 7/01/27    1,000  1,008,130 
Orlando & Orange County Expressway Authority, RB,       
 Series B (AMBAC), 5.00%, 7/01/35    4,365  4,163,686 
      19,783,783 
Utilities — 12.6%       
City of Boynton Beach Florida, Refunding RB (FGIC),       
 6.25%, 11/01/20 (c)    700  858,984 
City of Daytona Beach Florida, Refunding RB, Series B     
 (MBIA), 5.00%, 11/15/27    950  838,546 
City of Lakeland Florida, Refunding RB, Series A (MBIA),     
 5.00%, 10/01/28    2,000  1,999,860 
City of Miami Beach Florida, RB, Water and Sewer       
 Revenue (AMBAC), 5.75%, 9/01/25    2,000  2,045,760 
City of Panama City Florida, RB, Series B (MBIA),       
 5.25%, 10/01/22    1,500  1,517,460 
City of Port Saint Lucie Florida, RB (MBIA),       
 5.25%, 9/01/24    1,055  1,064,305 
County of Polk Florida, RB (MBIA), 5.25%, 10/01/22  1,000  1,009,600 
County of Saint Johns Florida, RB (FSA),       
 5.00%, 10/01/31    2,425  2,405,576 
Emerald Coast Utilities Authority, RB, System (MBIA),       
 5.25%, 1/01/36    1,000  949,340 
Saint Lucie West Services District, RB (MBIA),       
 5.25%, 10/01/34    1,000  957,670 
      13,647,101 
Total Municipal Bonds in Florida      81,195,779 

See Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2009 19

Schedule of Investments (continued) BlackRock MuniYield Insured Investment Fund (MFT)
(Percentages shown are based on Net Assets)

  Par   
Municipal Bonds  (000)  Value 
     Georgia — 0.9%     
Utilities — 0.9%     
County of Fulton Georgia, RB (MBIA), 5.25%, 1/01/35 $  1,000  $ 1,003,470 
Total Municipal Bonds in Georgia    1,003,470 
     Illinois — 4.6%     
Education — 0.8%     
Chicago Board of Education, Illinois, GO, Chicago School     
 Reform Board, Series A (MBIA), 5.50%, 12/01/26  825  903,631 
Transportation — 1.5%     
Chicago Transit Authority, RB, Federal Transit     
 Administration Section 5309, Series A (AGC),     
 6.00%, 6/01/26  1,400  1,574,412 
Utilities — 2.3%     
City of Chicago Illinois, Refunding RB, Second Lien     
 (MBIA), 5.50%, 1/01/30  895  923,917 
Illinois Municipal Electric Agency, RB, Series A (MBIA),     
 5.25%, 2/01/28  1,565  1,583,373 
    2,507,290 
Total Municipal Bonds in Illinois    4,985,333 
     Indiana — 0.9%     
Utilities — 0.9%     
Indianapolis Local Public Improvement Bond Bank, RB,     
 Waterworks Project, Series A (AGC), 5.50%, 1/01/38  960  949,066 
Total Municipal Bonds in Indiana    949,066 
     Iowa — 1.1%     
Health — 1.1%     
Iowa Finance Authority, RB, Iowa Health System (AGC),     
 5.25%, 2/15/29  1,190  1,171,412 
Total Municipal Bonds in Iowa    1,171,412 
     Kentucky -0.9%     
Utilities — 0.9%     
Kentucky Municipal Power Agency, RB, Prairie State     
 Project, Series A (BHAC), 5.25%, 9/01/42  1,000  1,007,160 
Total Municipal Bonds in Kentucky    1,007,160 
     Louisiana — 1.9%     
State — 1.4%     
Louisiana State Citizens Property Insurance Corp., RB,     
 Series C-3, Remarketed (AGC), 6.13%, 6/01/25  1,405  1,536,480 
Transportation — 0.5%     
New Orleans Aviation Board, Louisiana, Refunding RB,     
 Restructuring Garbs (AGC):     
     Series A-1, 6.00%, 1/01/23  375  401,130 
     Series A-2, 6.00%, 1/01/23  160  171,149 
    572,279 
Total Municipal Bonds in Louisiana    2,108,759 

  Par   
Municipal Bonds  (000)  Value 
     Michigan — 14.7%     
Health — 1.3%     
Royal Oak Hospital Finance Authority, Michigan, RB,     
 William Beaumont Hospital, 8.25%, 9/01/39  $ 1,265  $ 1,427,009 
Utilities — 13.4%     
City of Detroit Michigan, RB, Second Lien:     
     Series B (MBIA), 5.50%, 7/01/29  1,640  1,591,669 
     Series B, Remarketed (FSA), 6.25%, 7/01/36  1,800  1,892,196 
     Series B, Remarketed (FSA), 7.00%, 7/01/36  200  222,360 
     Series E, Remarketed (BHAC), 5.75%, 7/01/31  2,270  2,344,978 
City of Detroit Michigan, RB, Senior Lien, Series B,     
 Remarketed:     
     (BHAC), 5.50%, 7/01/35  3,750  3,794,588 
     (FSA), 7.50%, 7/01/33  475  549,993 
City of Detroit Michigan, RB, Second Lien, Series A,     
 Remarketed (BHAC), 5.50%, 7/01/36  2,265  2,271,206 
City of Detroit Michigan, Refunding RB, Senior Lien,     
 Series C-1, Remarketed (FSA), 7.00%, 7/01/27  1,650  1,874,334 
    14,541,324 
Total Municipal Bonds in Michigan    15,968,333 
     Minnesota — 3.0%     
Health — 3.0%     
City of Minneapolis Minnesota, RB, Fairview Health     
 Services, Series B (AGC), 6.50%, 11/15/38  3,000  3,267,990 
Total Municipal Bonds in Minnesota    3,267,990 
     New Jersey — 2.3%     
Health — 1.3%     
New Jersey Health Care Facilities Financing Authority,     
 RB, Virtua Health (AGC), 5.50%, 7/01/38  1,400  1,397,914 
State — 1.0%     
New Jersey EDA, RB, School Facilities Construction,     
 Series Z (AGC), 6.00%, 12/15/34  1,000  1,089,890 
Total Municipal Bonds in New Jersey    2,487,804 
     New York — 5.9%     
County/City/Special District/School District — 2.9%     
New York City Transitional Finance Authority, RB,     
 Fiscal 2009:     
     Series S-3, 5.25%, 1/15/39  1,000  998,480 
     Series S-4 (AGC), 5.50%, 1/15/29  2,000  2,108,480 
    3,106,960 
State — 3.0%     
New York State Dormitory Authority, RB, Education,     
 Series B, 5.25%, 3/15/38  3,250  3,306,290 
Total Municipal Bonds in New York    6,413,250 
     Puerto Rico — 1.4%     
State — 1.4%     
Puerto Rico Sales Tax Financing Corp., RB, First     
 Sub-Series A, 6.38%, 8/01/39  1,425  1,477,768 
Total Municipal Bonds in Puerto Rico    1,477,768 

See Notes to Financial Statements.

20 ANNUAL REPORT JULY 31, 2009

Schedule of Investments (continued) BlackRock MuniYield Insured Investment Fund (MFT)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
     Texas — 12.4%       
County/City/Special District/School District — 1.2%     
City of Dallas Texas, Refunding RB, Improvement       
 (AGC), 5.25%, 8/15/38  $ 850  $ 847,467 
Lubbock Copper Texas Independent School District, GO,     
 School Building (AGC), 5.75%, 2/15/42    425  436,602 
      1,284,069 
Health — 1.6%       
Harris County Health Facilities Development Corp.,       
 Refunding RB, Memorial Hermann Healthcare System,     
 Series B, 7.25%, 12/01/35    500  540,035 
Tarrant County Cultural Education Facilities Finance       
 Corp., Refunding RB, Christus Health, Series A (AGC),     
 6.50%, 7/01/37    1,100  1,162,557 
      1,702,592 
Transportation — 2.8%       
North Texas Tollway Authority, Refunding RB,       
 System (AGC):       
     1st, Series A, 5.75%, 1/01/40    1,500  1,554,555 
     First Tier, Series K-1, 5.75%, 1/01/38    1,400  1,459,864 
      3,014,419 
Utilities — 6.8%       
City of Houston Texas, Refunding RB, Series A,       
     First Lien (AGC): (AGC), 5.38%, 11/15/38    1,000  1,017,820 
     Combined, 6.00%, 11/15/35    2,700  2,966,193 
     Combined (AGC), 6.00%, 11/15/36    2,055  2,252,896 
Lower Colorado River Authority, Refunding RB (AGC),       
 5.50%, 5/15/36    1,155  1,175,894 
      7,412,803 
Total Municipal Bonds in Texas      13,413,883 
     Virginia — 1.1%       
State — 1.1%       
Virginia Public School Authority, Virginia, RB, School       
 Financing, 6.50%, 12/01/35    1,100  1,229,602 
Total Municipal Bonds in Virginia      1,229,602 
Total Municipal Bonds — 129.5%      140,421,154 
Municipal Bonds Transferred to       
Tender Option Bond Trusts (d)       
     Florida — 18.1%       
Health — 11.2%       
Miami-Dade County, Florida, Health Facilities Authority,     
 Refunding RB, Miami Children’s Hospital, Series A       
 (AMBAC), 5.63%, 8/15/11 (b)    6,960  7,664,422 
South Broward Hospital District, Florida, RB, Hospital       
 (MBIA), 5.63%, 5/01/12 (b)    4,000  4,498,560 
      12,162,982 

Municipal Bonds Transferred to    Par   
Tender Option Bond Trusts (d)    (000)  Value 
     Florida (concluded)       
County/City/Special District/School District — 1.2%     
City of Jacksonville, Florida, RB, Better Jacksonville       
 (MBIA), 5.00%, 10/01/27  $ 1,320  $ 1,334,743 
Housing — 2.4%       
Lee County HFA, RB, Multi-County Program, Series A-2     
 (GNMA), AMT, 6.00%, 9/01/40    1,560  1,677,031 
Manatee County HFA, RB, Series A (GNMA), AMT,       
 5.90%, 9/01/40    911  916,466 
      2,593,497 
Transportation — 2.1%       
Hillsborough County Aviation Authority, Florida, RB,       
 Series A (AGC), AMT, 5.50%, 10/01/38    2,499  2,264,353 
Utilities — 1.2%       
Jacksonville Electric Authority, RB, Issue Three,       
 Series Two, River Power Park, 5.00%, 10/01/37    1,290  1,237,265 
      19,592,841 
     District of Columbia — 0.7%       
Utilities — 0.7%       
District of Columbia Water & Sewer Authority, Refunding     
 RB, Series A, 6.00%, 10/01/35    750  811,556 
     Nevada — 3.9 %       
County/City/Special District/School District — 3.9%     
Clark County Water Reclamation District, GO:       
     Limited Tax, 6.00%, 7/01/38    2,010  2,142,660 
     Series B, 5.50%, 7/01/29    1,994  2,106,669 
      4,249,329 
     New York — 1.0%       
Utilities — 1.0%       
New York City Municipal Water Finance Authority, RB,       
 Series FF-2, 5.50%, 6/15/40    1,095  1,150,377 
     Kentucky — 1.0%       
State — 1.0%       
Kentucky State Property & Buildings Commission,       
 Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/27  1,003  1,062,633 
     Texas — 2.5%       
Utilities — 2.5%       
City of San Antonio, Texas, Refunding RB, Series A,       
 5.25%, 2/01/31    2,609  2,684,131 
Total Municipal Bonds Transferred to       
Tender Option Bond Trusts — 27.2%      29,550,866 
Total Long-Term Investments       
(Cost — $170,823,823) — 156.7%      169,972,020 

See Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2009 21

Schedule of Investments (concluded) BlackRock MuniYield Insured Investment Fund (MFT)
(Percentages shown are based on Net Assets)

  Par     
Short-Term Securities  (000)    Value 
     Pennsylvania — 1.7%       
City of Philadelphia, Pennsylvania, GO,       
 Multi-Mode, Refunding, VRDN, Series B (FSA),       
 2.50%, 8/07/09 (e)  $ 1,800  $ 1,800,000 
  Shares     
     Money Market Funds — 2.1%       
FFI Institutional Tax-Exempt Fund, 0.42% (f)(g)  2,301,550    2,301,550 
Total Short-Term Securities       
(Cost — $4,101,550) — 3.8%      4,101,550 
Total Investments (Cost — $174,925,373*) — 160.5%  174,073,570 
Other Assets Less Liabilities — 5.8%      6,313,233 
Liability for Trust Certificates, Including Interest       
   Expense and Fees Payable — (14.2)%      (15,422,054) 
Preferred Shares, at Redemption Value — (52.1)%      (56,530,690) 
Net Assets Applicable to Common Shares — 100.0%  $108,434,059 
* The cost and unrealized appreciation (depreciation) of investments as of July 31, 
       2009, as computed for federal income tax purposes, were as follows:   
       Aggregate cost    $159,569,681 
       Gross unrealized appreciation    $ 5,237,772 
       Gross unrealized depreciation      (6,109,820) 
       Net unrealized depreciation    $ (872,048) 
(a) Represents a zero-coupon bond. Rate shown reflects the current yield as of 
       report date.       
(b) US government securities, held in escrow, are used to pay interest on this security, 
       as well as to retire the bond in full at the date indicated, typically at a premium 
       to par.       
 (c) Security is collateralized by Municipal or US Treasury Obligations.     
(d) Securities represent bonds transferred to a tender option bond trust in exchange for 
       which the Fund acquired residual interest certificates. These securities serve as col- 
       lateral in a financing transaction. See Note 1 of the Notes to Financial Statements 
       for details of municipal bonds transferred to tender option bond trusts. 
 (e) Security may have a maturity of more than one year at time of issuance, but has 
       variable rate and demand features that qualify it as a short-term security. The rate 
       shown is as of report date and maturity shown is the date the principal owed can 
       be recovered through demand.       
(f) Investments in companies considered to be an affiliate of the Fund, for purposes of 
       Section 2(a)(3) of the Investment Company Act of 1940, were as follows: 
  Net     
       Affiliate  Activity    Income 
       CMA Florida Municipal Money Fund  (12,412,044)    $37,055 
       FFI Institutional Tax-Exempt Fund  2,301,550    $ 4,811 
 (g) Represents the current yield as of report date.       

•  Effective August 1, 2008, the Fund adopted Financial Accounting Standards Board 
  Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” 
  (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for 
  measuring fair values and requires additional disclosures about the use of fair value 
  measurements. Various inputs are used in determining the fair value of investments, 
  which are as follows:   
  •   Level 1 — price quotations in active markets/exchanges for identical securities 
  •   Level 2 — other observable inputs (including, but not limited to: quoted prices for 
     similar assets or liabilities in markets that are active, quoted prices for identical 
     or similar assets or liabilities in markets that are not active, inputs other than 
     quoted prices that are observable for the assets or liabilities (such as interest 
     rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and 
     default rates) or other market-corroborated inputs)   
  •   Level 3 — unobservable inputs based on the best information available in the 
     circumstances, to the extent observable inputs are not available (including the 
     Fund’s own assumptions used in determining the fair value of investments) 
  The inputs or methodology used for valuing securities are not necessarily an indica- 
  tion of the risk associated with investing in those securities. For information about 
  the Fund's policy regarding valuation of investments and other significant accounting 
  policies, please refer to Note 1 of the Notes to Financial Statements. 
  The following table summarizes the inputs used as of July 31, 2009 in determining 
  the fair valuation of the Fund's investments:   
  Valuation  Investments in 
  Inputs  Securities 
      Assets 
  Level 1 — Short-Term Securities  $ 2,301,550 
  Level 2:   
    Long-Term Investments1  169,972,020 
    Short-Term Securities  1,800,000 
  Total Level 2  171,772,020 
  Level 3  — 
  Total  $ 174,073,570 
    1 See above Schedule of Investments for values in each sector.   

See Notes to Financial Statements.

22 ANNUAL REPORT JULY 31, 2009

Schedule of Investments July 31, 2009 BlackRock MuniYield Michigan Insured Fund, Inc. (MIY)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
     Michigan — 142.3%       
Corporate — 22.0%       
Delta County EDC, Refunding RB, MeadWestvaco —       
 Escanaba, Series B, AMT, 6.45%, 4/15/12 (a)  $ 1,500  $ 1,709,850 
Dickinson County EDC, Michigan, Refunding RB,       
 International Paper Co. Project, Series A,       
 5.75%, 6/01/16    3,900  3,809,403 
Michigan Strategic Fund, Refunding RB, College, Detroit,     
 Fund, Pollution, Series AA (MBIA), 6.95%, 5/01/11  6,000  6,378,840 
Michigan Strategic Fund, Refunding RB, Detroit       
 Edison Co., Series A (MBIA), AMT, 5.55%, 9/01/29  10,250  9,030,250 
Monroe County EDC, Michigan, Refunding RB, College,     
 Detroit Edison Co., Series AA (MBIA), 6.95%, 9/01/22  15,000  16,874,400 
Saint Clair County EDC, Michigan, Refunding RB, Detroit     
 Edison, Series AA (AMBAC), 6.40%, 8/01/24    17,800  18,018,050 
      55,820,793 
County/City/Special District/School District — 30.3%     
Adrian City School District, Michigan, GO (FSA),       
 5.00%, 5/01/14 (a)    3,600  4,139,280 
Birmingham City School District, Michigan, GO, School     
 Building & Site (FSA), 5.00%, 11/01/33    1,000  1,002,670 
City of Oak Park Michigan, GO, Street Improvement       
 (MBIA), 5.00%, 5/01/30    500  490,465 
County of Wayne Michigan, GO, Building Authority,       
 Capital Improvement, Series A (MBIA),       
 5.25%, 6/01/16    1,000  1,003,020 
Detroit City School District, Michigan, GO, School       
 Building & Site Improvement:       
     Series A (FGIC), 5.38%, 5/01/13 (a)    2,300  2,635,547 
     Series A, Refunding (FSA), 5.00%, 5/01/21    3,000  2,843,070 
     Series B (FGIC), 5.00%, 5/01/28    3,100  2,712,469 
Eaton Rapids Public Schools, Michigan, GO, School       
 Building & Site (FSA):       
     5.25%, 5/01/14    1,675  1,772,853 
     5.25%, 5/01/20    1,325  1,413,523 
Frankenmuth School District, Michigan, GO (FGIC),       
 5.75%, 5/01/10 (a)    1,000  1,040,280 
Gibraltar School District, Michigan, GO, School Building     
 & Site:       
     (FGIC), 5.00%, 5/01/14 (a)    2,940  3,380,412 
     (MBIA), 5.00%, 5/01/28    710  718,321 
Grand Blanc Community Schools, Michigan, GO (MBIA),     
 5.63%, 5/01/20    1,100  1,163,789 
Grand Rapids Building Authority, Michigan, RB, Series A     
 (AMBAC), 5.50%, 10/01/12 (a)    1,035  1,180,148 
Gull Lake Community School District, Michigan, GO,       
 School Building & Site (FSA), 5.00%, 5/01/14 (a)  5,625  6,467,625 
Harper Woods School District, Michigan, GO, School       
 Building & Site:       
     (FGIC), 5.00%, 5/01/14 (a)    4,345  4,995,881 
     (MBIA), 5.00%, 5/01/34    430  423,365 
Hartland Consolidated School District, Michigan, GO       
 (FGIC), 6.00%, 5/01/10 (a)    6,825  7,112,674 
Jenison Public Schools, Michigan, GO, Building & Site     
 (MBIA), 5.50%, 5/01/19    1,575  1,665,421 
Lansing Building Authority, Michigan, GO, Series A       
 (MBIA), 5.38%, 6/01/13 (a)    1,510  1,738,720 
Montrose Township School District, Michigan, GO       
 (MBIA), 6.20%, 5/01/17    1,000  1,185,100 
Orchard View Schools, Michigan, GO, School Building     
 & Site (MBIA), 5.00%, 11/01/13 (a)    5,320  6,110,499 

  Par   
Municipal Bonds  (000)  Value 
     Michigan (continued)     
County/City/Special District/School District (concluded)     
Pennfield School District, Michigan, GO, School Building     
 & Site (FGIC) (a):     
     5.00%, 5/01/14  $ 765  $ 875,458 
     Refunded Balance, 5.00%, 5/01/14  605  692,356 
Reed City Public Schools, Michigan, GO, School Building     
 & Site (FSA), 5.00%, 5/01/14 (a)  1,425  1,638,465 
South Haven Public Schools, Michigan, GO (FSA),     
 5.00%, 5/01/13 (a)  1,350  1,532,210 
Southfield Library Building Authority, Michigan, GO     
 (MBIA), 5.50%, 5/01/10 (a)  1,300  1,349,933 
Southfield Public Schools, Michigan, GO, School     
 Building & Site, Series B (FSA), 5.00%, 5/01/14 (a)  3,500  4,005,365 
Sparta Area Schools, Michigan, GO, School Building     
 & Site (FGIC), 5.00%, 5/01/14 (a)  1,325  1,523,485 
Thornapple Kellogg School District, Michigan,     
 GO, Refunding, School Building & Site (MBIA),     
 5.00%, 5/01/32  2,500  2,493,075 
Waverly Community School, GO (FGIC),     
 5.50%, 5/01/10 (a)  1,100  1,141,316 
Wayne Charter County Michigan, GO, Airport Hotel,     
 Detroit Metropolitan Airport, Series A (MBIA),     
 5.00%, 12/01/30  1,750  1,638,683 
West Bloomfield School District, Michigan, GO,     
 Refunding (MBIA):     
     5.50%, 5/01/17  1,710  1,874,605 
     5.50%, 5/01/18  1,225  1,308,643 
Zeeland Public Schools, Michigan, GO, School Building     
 & Site (MBIA), 5.00%, 5/01/29  1,600  1,615,360 
    76,884,086 
Education — 7.4%     
Eastern Michigan University, Michigan, RB, General,     
 Series B (FGIC) (a):     
     5.60%, 6/01/10  1,500  1,563,990 
     5.63%, 6/01/10  1,310  1,366,160 
Eastern Michigan University, Michigan, Refunding RB,     
 General (AMBAC):     
     6.00%, 6/01/10 (a)  590  623,364 
     6.00%, 6/01/20  435  449,220 
Grand Valley State University, Michigan, RB (MBIA),     
 5.50%, 2/01/18  2,070  2,246,757 
Harper Creek Community School District, Michigan, GO,     
 Refunding (FSA), 5.00%, 5/01/22  1,125  1,164,667 
Michigan Higher Education Facilities Authority, Michigan,     
 RB, Limited Obligation, Hillsdale College Project,     
 5.00%, 3/01/35  1,875  1,655,756 
Michigan Higher Education Facilities Authority, Michigan,     
 Refunding RB, Limited Obligation, Creative Studies (a):     
     5.85%, 6/01/12  1,235  1,392,635 
     5.90%, 6/01/12  1,145  1,292,739 
Michigan Higher Education Student Loan Authority,     
 Michigan, RB, Student Loan (AMBAC), AMT:     
     Series XVII-B, 5.40%, 6/01/18  2,500  2,448,300 
     Series XVII-Q, 5.00%, 3/01/31  3,000  2,493,720 
Saginaw Valley State University, Michigan, Refunding RB,     
 General (MBIA), 5.00%, 7/01/24  2,100  2,131,899 
    18,829,207 

See Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2009 23

Schedule of Investments (continued) BlackRock MuniYield Michigan Insured Fund, Inc. (MIY)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
     Michigan (continued)       
Health — 22.6%       
County of Dickinson Michigan, Refunding RB (ACA),       
 5.80%, 11/01/24  $ 3,100  $ 2,783,738 
Flint Hospital Building Authority, Michigan, Refunding       
 RB, Hurley Medical Center (ACA):       
     6.00%, 7/01/20    1,305  1,086,347 
     Series A, 5.38%, 7/01/20    615  482,603 
Kent Hospital Finance Authority, Michigan, RB, Spectrum     
 Health, Series A (MBIA), 5.50%, 7/15/11 (a)    3,000  3,297,480 
Kent Hospital Finance Authority, Michigan, Refunding       
 RB, Butterworth, Series A (MBIA), 7.25%, 1/15/13  2,685  2,926,838 
Michigan State Hospital Finance Authority, Michigan,       
 RB, Ascension Health Credit, Series A (MBIA),       
 6.25%, 11/15/09 (a)    2,500  2,566,900 
Michigan State Hospital Finance Authority, Michigan, RB     
 Hospital, MidMichigan Obligation Group, Series A       
 (AMBAC), 5.50%, 4/15/18    2,530  2,568,456 
Michigan State Hospital Finance Authority, Michigan, RB,     
 McLaren Health Care:       
     5.75%, 5/15/38    4,500  4,229,235 
     Series C, 5.00%, 8/01/35    1,000  849,430 
Michigan State Hospital Finance Authority, Michigan,       
 RB, MidMichigan Obligation Group, Series A,       
 5.00%, 4/15/36    1,750  1,483,475 
Michigan State Hospital Finance Authority, Michigan,       
 Refunding RB:       
     Henry Ford Health System, Series A,       
     5.25%, 11/15/46    2,500  1,899,475 
     Hospital, Crittenton, Series A, 5.63%, 3/01/27    2,235  2,078,103 
     Hospital, Oakwood Obligation Group, Series A,       
     5.00%, 7/15/25    4,100  3,394,964 
     Hospital, Oakwood Obligation Group, Series A,       
     5.00%, 7/15/37    630  455,326 
     Hospital, Saint John Hospital, Series A (AMBAC),       
     6.00%, 5/15/13 (b)    2,475  2,487,697 
     Hospital, Sparrow Obligated, 5.00%, 11/15/31    3,100  2,636,984 
     Trinity Health Credit, Series C, 5.38%, 12/01/23    1,000  1,005,820 
     Trinity Health Credit, Series C, 5.38%, 12/01/30    3,755  3,673,103 
     Trinity Health Credit, Series D, 5.00%, 8/15/34    3,100  2,930,771 
     Trinity Health, Series A, 6.00%, 12/01/20    2,200  2,257,926 
     Trinity Health, Series A, 6.25%, 12/01/28    930  995,016 
     Trinity Health, Series A, 6.50%, 12/01/33    1,000  1,072,900 
     Trinity Health, Series A (AMBAC), 6.00%, 12/01/27  6,400  6,528,896 
Royal Oak Hospital Finance Authority, Michigan, RB,       
 William Beaumont Hospital, 8.25%, 9/01/39    1,000  1,128,070 
Saginaw Hospital Finance Authority, Michigan,       
 Refunding RB, Covenant Medical Center, Series E       
 (MBIA), 5.63%, 7/01/13    2,500  2,528,275 
      57,347,828 
Housing — 4.6%       
Michigan State HDA, RB, College Program (GNMA), AMT:     
     Deaconess Tower, 5.25%, 2/20/48    1,000  933,440 
     Williams Pavilion, 4.75%, 4/20/37    3,990  3,509,963 
Michigan State HDA, RB, Non Ace, Series A:       
     6.00%, 10/01/45    6,990  7,008,873 
     (MBIA), AMT, 5.30%, 10/01/37    200  189,904 
      11,642,180 

  Par   
Municipal Bonds  (000)  Value 
     Michigan (concluded)     
State — 16.5%     
Michigan Municipal Bond Authority, Michigan, RB,     
 Local Government Loan Program, Group A (AMBAC),     
 5.50%, 11/01/20  $ 1,065  $ 1,076,481 
Michigan Municipal Bond Authority, Michigan, RB, Local     
 Government, Charter County Wayne, Series B (AGC):     
     5.00%, 11/01/14  2,400  2,620,464 
     5.00%, 11/01/15  1,500  1,633,155 
     5.00%, 11/01/16  500  541,305 
     5.38%, 11/01/24  125  129,730 
Michigan State Building Authority, Refunding RB,     
 Facilities Program:     
     Series I, 6.25%, 10/15/38  3,900  4,172,649 
     Series I (FSA), 5.50%, 10/15/10  7,250  7,613,080 
     Series I (FSA), 5.50%, 10/15/11  15,030  16,297,630 
     Series I (MBIA), 5.50%, 10/15/18  2,500  2,573,625 
     Series II (MBIA), 5.00%, 10/15/29  3,500  3,370,465 
State of Michigan, COP (AMBAC),     
 5.52%, 6/01/22 (b)(c)  3,000  1,725,210 
    41,753,794 
Transportation — 16.4%     
Wayne Charter County Michigan, RB, Detroit     
 Metropolitan Wayne County, Series A (MBIA), AMT,     
 5.38%, 12/01/15  10,660  10,656,376 
Wayne County Airport Authority, RB, Detroit Metropolitan     
 Wayne County Airport (MBIA), AMT:     
     5.25%, 12/01/25  7,525  6,565,638 
     5.25%, 12/01/26  6,300  5,434,758 
     5.00%, 12/01/34  9,160  6,843,619 
Wayne County Airport Authority, Refunding RB     
 (AGC), AMT:     
     5.75%, 12/01/25  4,000  3,796,720 
     5.75%, 12/01/26  1,000  941,390 
     5.38%, 12/01/32  8,700  7,375,425 
    41,613,926 
Utilities — 22.5%     
City of Detroit Michigan, RB, Second Lien, Series B:     
     (MBIA), 5.00%, 7/01/13 (a)  1,550  1,750,539 
     (MBIA), 5.00%, 7/01/34  2,420  2,078,369 
     Remarketed (FSA), 7.00%, 7/01/36  3,000  3,335,400 
City of Detroit Michigan, RB, Senior Lien, Series A:     
     (FGIC), 5.88%, 1/01/10 (a)  1,250  1,290,238 
     (FGIC), 5.75%, 7/01/11 (a)  7,250  7,923,597 
     (FSA), 5.00%, 7/01/25  4,000  3,922,400 
     (MBIA), 5.00%, 7/01/13 (a)  3,750  4,235,175 
     (MBIA), 5.00%, 7/01/34  6,900  5,925,927 
City of Detroit Michigan, RB, Series B (MBIA),     
 5.25%, 7/01/13 (a)  11,790  13,426,924 
City of Detroit Michigan, Refunding RB:     
     (FGIC), 6.25%, 7/01/12 (b)  860  929,127 
     Second Lien, Series C (FSA), 5.00%, 7/01/29  10,570  10,283,659 
City of Muskegon Heights Michigan, RB, Series A     
 (MBIA), 5.63%, 11/01/10 (a)  1,830  1,945,491 
    57,046,846 
Total Municipal Bonds in Michigan    360,938,660 

See Notes to Financial Statements.

24 ANNUAL REPORT JULY 31, 2009

Schedule of Investments (concluded) BlackRock MuniYield Michigan Insured Fund, Inc. (MIY)
(Percentages shown are based on Net Assets)

  Par   
Municipal Bonds  (000)  Value 
Puerto Rico — 4.5%     
Housing — 0.8%     
Puerto Rico HFA, RB, Subordinate, Capital Fund     
 Modernization, 5.13%, 12/01/27  $ 2,000  $ 2,002,200 
State — 2.1%     
Puerto Rico Public Buildings Authority, Refunding RB,     
 Government Facilities, Series M-3 (MBIA),     
 6.00%, 7/01/27  2,100  2,077,173 
Puerto Rico Sales Tax Financing Corp., RB, CAB, Series A   
 (MBIA) (c):     
5.19%, 8/01/43  12,500  1,385,250 
4.99%, 8/01/46  20,000  1,811,000 
    5,273,423 
Transportation — 1.6%     
Puerto Rico Highway & Transportation Authority,     
 Refunding RB, Series CC (AGC), 5.50%, 7/01/31  4,000  4,182,440 
Total Municipal Bonds in Puerto Rico    11,458,063 
Total Municipal Bonds — 146.8%    372,396,723 
Municipal Bonds Transferred to     
Tender Option Bond Trusts (d)     
County/City/Special District/School District — 4.5%     
Lakewood Public Schools, Michigan, GO, School Building   
 (FSA), 5.00%, 5/01/37  6,775  6,749,860 
Portage Public Schools, Michigan, GO, School Building     
 (FSA), 5.00%, 5/01/31  4,650  4,682,410 
    11,432,270 
Education — 7.6%     
Saginaw Valley State University, Michigan, Refunding RB     
 (FSA), 5.00%, 7/01/31  7,500  7,515,750 
Wayne State University, Refunding RB (FSA),     
 5.00%, 11/15/35  12,210  11,827,217 
    19,342,967 
Total Municipal Bonds Transferred to     
Tender Option Bond Trusts — 12.1%    30,775,237 
Total Long-Term Investments     
(Cost — $406,461,911) — 158.9%    403,171,960 
Short-Term Securities  Shares   
CMA Michigan Municipal Money Fund,     
 0.04% (e)(f)  7,530,323  7,530,323 
Total Short-Term Securities     
(Cost — $7,530,323) — 3.0%    7,530,323 
Total Investments (Cost — $413,992,234*) — 161.9%    410,702,283 
Other Assets Less Liabilities — 1.5%    3,831,892 
Liability for Trust Certificates, Including Interest     
   Expense and Fees Payable — (6.4)%    (16,238,270) 
Preferred Shares, at Redemption Value — (57.0)%    (144,665,717) 
Net Assets Applicable to Common Shares — 100.0%    $253,630,188 

* The cost and unrealized appreciation (depreciation) of investments as of July 31, 
     2009, as computed for federal income tax purposes, were as follows:   
     Aggregate cost    $398,160,053 
     Gross unrealized appreciation    $ 15,680,195 
     Gross unrealized depreciation      (19,327,965) 
     Net unrealized depreciation    $ (3,647,770) 
(a) US government securities, held in escrow, are used to pay interest on this security, 
     as well as to retire the bond in full at the date indicated, typically at a premium 
     to par.       
(b) Security is collateralized by Municipal or US Treasury Obligations.     
(c) Represents a zero-coupon bond. Rate shown reflects the current yield as of 
     report date.       
(d) Securities represent bonds transferred to a tender option bond trust in exchange for 
     which the Fund acquired residual interest certificates. These securities serve as col- 
     lateral in a financing transaction. See Note 1 of the Notes to Financial Statements 
     for details of municipal bonds transferred to tender option bond trusts. 
(e) Investments in companies considered to be an affiliate of the Fund, for purposes of 
     Section 2(a)(3) of the Investment Company Act of 1940, were as follows: 
    Net     
     Affiliate  Activity    Income 
     CMA Michigan Municipal Money Fund  2,962,790    $66,508 
(f) Represents the current yield as of report date.       
• Effective August 1, 2008, the Fund adopted Financial Accounting Standards Board 
     Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” 
     (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for 
     measuring fair values and requires additional disclosures about the use of fair value 
     measurements. Various inputs are used in determining the fair value of investments, 
     which are as follows:       
     •   Level 1 — price quotations in active markets/exchanges for identical securities 
     •  Level 2 — other observable inputs (including, but not limited to: quoted prices for 
  similar assets or liabilities in markets that are active, quoted prices for identical 
   or similar assets or liabilities in markets that are not active, inputs other than 
   quoted prices that are observable for the assets or liabilities (such as interest 
  rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and 
   default rates) or other market-corroborated inputs)     
     •   Level 3 — unobservable inputs based on the best information available in the 
   circumstances, to the extent observable inputs are not available (including the 
   Fund’s own assumptions used in determining the fair value of investments) 
     The inputs or methodology used for valuing securities are not necessarily an indica- 
     tion of the risk associated with investing in those securities. For information about 
     the Fund’s policy regarding valuation of investments and other significant accounting 
     policies, please refer to Note 1 of the Notes to Financial Statements.   
     The following table summarizes the inputs used as of July 31, 2009 in determining 
     the fair valuation of the Fund’s investments:       
     Valuation    Investments in 
     Inputs      Securities 
        Assets 
     Level 1 — Short-Term Securities    $ 7,530,323 
     Level 2 — Long-Term Investments1    403,171,960 
     Level 3      — 
     Total    $ 410,702,283 
  1 See above Schedule of Investments for values in each sector.     

See Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2009 25

Schedule of Investments July 31, 2009 BlackRock MuniYield New Jersey Insured Fund, Inc. (MJI)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
     New Jersey — 136.7%       
Corporate — 1.6%       
Gloucester County Improvement Authority, Refunding       
 RB, Waste Management Inc. Project, Series A,       
 6.85%, 12/01/29  $ 2,000  $ 2,019,600 
County/City/Special District/School District — 27.5%     
City of Perth Amboy New Jersey, GO, CAB (FSA),       
 5.49%, 7/01/35 (a)    1,250  1,027,288 
County of Hudson New Jersey, COP, Refunding (MBIA),     
 6.25%, 12/01/16    1,000  1,112,960 
County of Middlesex New Jersey, COP (MBIA),       
 5.00%, 8/01/22    3,000  3,000,570 
Essex County Improvement Authority, Refunding RB,       
 County Guaranteed (MBIA), AMT, 4.75%, 11/01/32  1,000  817,290 
Hopatcong Boro New Jersey, GO, Refunding, Sewer       
 (AMBAC), 4.50%, 8/01/33    750  731,715 
Hudson County Improvement Authority, RB, County       
 Guaranteed:       
     CAB, Series A-1 (MBIA), 4.49%, 12/15/32 (b)    1,000  233,890 
     Harrison Parking Facilities Project, Series C (AGC),     
     5.38%, 1/01/44    1,400  1,434,440 
Hudson County Improvement Authority, Refunding       
 RB, Hudson County Lease Project (MBIA),       
 5.38%, 10/01/24    7,500  7,550,400 
Jackson Township School District, New Jersey, GO       
 (FGIC), 5.00%, 4/15/12 (c)    5,200  5,767,060 
Monmouth County Improvement Authority, RB,       
 Governmental Loan (AMBAC):       
     5.00%, 12/01/11 (c)    980  1,075,981 
     5.00%, 12/01/11 (c)    975  1,070,491 
     5.20%, 12/01/14    240  246,396 
     5.25%, 12/01/15    765  782,457 
     5.00%, 12/01/17    605  640,507 
     5.00%, 12/01/18    545  573,814 
     5.00%, 12/01/19    560  601,462 
Morristown Parking Authority, RB, Guaranteed (MBIA),     
 4.50%, 8/01/37    1,355  1,270,949 
New Jersey State Transit Corp., COP, Subordinate,       
 Federal Transit Admin Grants, Series A-FS (FSA),       
 5.00%, 9/15/21    1,000  1,028,660 
Newark Housing Authority, Refunding RB, Additional,       
 Newark Redevelopment Project (MBIA),       
 4.38%, 1/01/37    3,600  3,082,392 
Salem County Improvement Authority, RB, Finlaw State     
 Office Building (FSA):       
     5.38%, 8/15/28    1,250  1,320,475 
     5.25%, 8/15/38    700  716,569 
      34,085,766 
Education — 21.5%       
New Jersey Educational Facilities Authority, RB,       
 Montclair State University, Series A (AMBAC),       
 5.00%, 7/01/21    1,600  1,648,480 
New Jersey Educational Facilities Authority, Refunding RB:     
     College of New Jersey, Series D (FSA),       
     5.00%, 7/01/35    3,725  3,794,620 
     Montclair State University, Series J (MBIA),       
     4.25%, 7/1/30    2,895  2,506,781 
     Ramapo College, Series I (AMBAC), 4.25%, 7/01/31  1,250  1,074,038 
     Ramapo College, Series I (AMBAC), 4.25%, 7/01/36  3,890  3,197,308 
     Rowan University, Series B (AGC), 5.00%, 7/01/26  2,575  2,746,547 
     Stevens Institute Technology, Series A,       
     5.00%, 7/01/34    1,500  1,281,435 

    Par   
Municipal Bonds    (000)           Value 
     New Jersey (continued)       
Education (concluded)       
New Jersey Educational Facilities Authority, RB:       
     Rowan University, Series C (MBIA),       
     5.00%, 7/01/14 (c)  $ 1,185  $ 1,350,071 
     William Paterson University, Series E (Syncora       
     Guarantee Inc.), 5.00%, 7/1/21    1,725  1,747,563 
New Jersey State Higher Education Assistance Authority,     
 RB, Series A (AMBAC), AMT, 5.30%, 6/01/17    3,565  3,579,117 
University of Medicine & Dentistry of New Jersey,       
 New Jersey, RB, Series A (AMBAC):       
     5.50%, 12/01/18    570  567,897 
     5.50%, 12/01/19    1,145  1,135,130 
     5.50%, 12/01/20    1,130  1,113,999 
     5.50%, 12/01/21    865  845,261 
      26,588,247 
Health — 11.5%       
New Jersey Health Care Facilities Financing Authority,       
 RB, Meridian Health System Obligation Group (FSA),     
 5.25%, 7/01/19    2,250  2,260,080 
New Jersey Health Care Facilities Financing Authority,       
 RB, Meridian Health, Series I (AGC), 5.00%, 7/01/38  750  739,807 
New Jersey Health Care Facilities Financing Authority, RB:     
     Atlantic City Medical, 5.75%, 7/01/12 (c)    525  590,520 
     Atlantic City Medical, 6.25%, 7/01/12 (c)    290  330,324 
     Atlantic City Medical, 6.25%, 7/01/17    325  342,368 
     Atlantic City Medical, 5.75%, 7/01/25    790  799,235 
     Meridian Health, Series II (AGC), 5.00%, 7/01/38  3,000  2,959,230 
     Somerset Medical Center, 5.50%, 7/01/33    1,125  615,071 
     South Jersey Hospital, 6.00%, 7/01/12 (c)    4,000  4,552,360 
     Virtua Health (AGC), 5.50%, 7/01/38    1,000  998,510 
      14,187,505 
Housing — 8.3%       
New Jersey State Housing & Mortgage Finance       
 Agency, RB:       
     Capital Fund Program, Series A (FSA),       
     4.70%, 11/01/25    4,325  4,276,301 
     Home Buyer, Series CC, AMT (MBIA),       
     5.80%, 10/01/20    2,640  2,730,737 
     S/F Housing, Series T, AMT, 4.70%, 10/01/37    500  430,820 
     Series A, AMT (FGIC), 4.90%, 11/01/35    820  730,448 
     Series AA, 6.50%, 10/01/38    1,350  1,436,063 
Newark Housing Authority, RB, South Ward Police       
 Facility (AGC):       
     5.75%, 12/01/30    400  403,688 
     6.75%, 12/01/38    250  267,038 
      10,275,095 
State — 36.1%       
Garden State Preservation Trust, RB (FSA):       
     2005 Series A, 5.80%, 11/01/22    2,605  2,953,992 
     CAB, Series B, 5.12%, 11/01/23 (b)    6,925  3,569,076 
New Jersey EDA, RB, CAB, Motor Vehicle Surcharge       
 (MBIA), 4.95%, 7/01/21 (b)    2,325  1,314,973 
New Jersey EDA, RB, Cigarette Tax:       
     5.63%, 6/15/19    1,060  984,348 
     (Radian), 5.75%, 6/15/29    785  653,041 
     (Radian), 5.50%, 6/15/31    225  179,408 
     (Radian), 5.75%, 6/15/34    465  374,720 

See Notes to Financial Statements.

26 ANNUAL REPORT JULY 31, 2009

Schedule of Investments (continued) BlackRock MuniYield New Jersey Insured Fund, Inc. (MJI)
(Percentages shown are based on Net Assets)

    Par   
Municipal Bonds    (000)  Value 
     New Jersey (continued)       
State (concluded)       
New Jersey EDA, RB, Motor Vehicle Surcharge RB,       
 Series A (MBIA):       
     5.00%, 7/01/29  $ 3,900  $ 3,813,264 
     5.25%, 7/01/33    8,500  8,262,765 
     5.00%, 7/01/34    1,765  1,705,643 
New Jersey EDA, RB, School Facilities Construction,       
 Series Z (AGC), 6.00%, 12/15/34    1,200  1,307,868 
New Jersey EDA, RB, School Facilities, Series U       
 (AMBAC), 5.00%, 9/01/37    1,000  969,160 
New Jersey EDA, Refunding RB, School Facilities       
 Construction, Series K (MBIA), 5.25%, 12/15/17    750  815,197 
New Jersey Sports & Exposition Authority, Refunding       
 RB (MBIA):       
     5.50%, 3/01/21    1,540  1,676,182 
     5.50%, 3/01/22    1,000  1,080,440 
New Jersey Transportation Trust Fund Authority, New       
 Jersey, RB, CAB, Transportation System, Series C (b):     
     (AMBAC), 5.05%, 12/15/35    2,760  475,603 
     (FSA), 4.84%, 12/15/32    4,750  1,110,977 
New Jersey Transportation Trust Fund Authority,       
 New Jersey, RB, Transportation System:       
     Series A (AGC), 5.63%, 12/15/28    780  830,489 
     Series A (FSA), 5.25%, 12/15/20    4,250  4,712,528 
     Series B (MBIA), 5.50%, 12/15/21    3,600  3,925,260 
     Series D (FSA), 5.00%, 6/15/19    3,240  3,464,759 
State of New Jersey, COP, Equipment Lease Purchase,     
 Series A, 5.25%, 6/15/27    500  503,800 
      44,683,493 
Tobacco — 1.7%       
Tobacco Settlement Financing Corp., New Jersey, RB,       
 7.00%, 6/01/13 (c)    1,715  2,080,775 
Transportation — 13.1%       
Delaware River Port Authority Pennsylvania & New Jersey,     
 RB (FSA), 6.00%, 1/01/18    5,000  5,093,650 
New Jersey State Turnpike Authority, RB, Growth       
 & Income Securities, Series B (AMBAC),       
 6.14%, 1/01/35 (b)    3,005  2,156,689 
New Jersey Transportation Trust Fund Authority, New       
 Jersey, RB, Transportation System, Series A (AMBAC),     
 5.00%, 12/15/32    730  732,438 
Port Authority of New York & New Jersey, RB,       
 Consolidated:       
     93rd Series, 6.13%, 6/01/94    1,000  1,089,310 
     138th (FSA), AMT, 4.75%, 12/01/34    1,000  921,510 
     146th (FSA), AMT, 4.25%, 12/01/32    5,000  4,101,750 
     152nd, AMT, 5.75%, 11/01/30    2,000  2,066,840 
      16,162,187 
Utilities — 15.4%       
Essex County Utilities Authority, Refunding RB (AGC),       
 4.13%, 4/01/22    1,000  974,410 
Jersey City Sewage Authority, Refunding RB (AMBAC),     
 6.25%, 1/01/14    3,750  4,133,287 
New Jersey EDA, RB, NJ American Water Co. Inc. Project,     
 Series A (FGIC), AMT, 6.88%, 11/01/34    5,070  5,070,862 

    Par   
Municipal Bonds    (000)  Value 
     New Jersey (concluded)       
Utilities (concluded)       
New Jersey EDA, RB, Series A, New Jersey, American       
 Water (AMBAC), AMT, 5.25%, 11/01/32  $ 1,000  $ 860,670 
New Jersey EDA, RB, United Water NJ Inc., Series B,       
 Remarketed (AMBAC), 4.50%, 11/01/25    1,000  1,021,180 
North Hudson Sewerage Authority, Refunding RB,       
 Series A (MBIA), 5.13%, 8/01/20    1,710  1,658,290 
Rahway Valley Sewerage Authority, RB, CAB, Series A       
 (MBIA) (b):       
     4.74%, 9/01/26    4,100  1,618,926 
     4.39%, 9/01/33    2,350  563,530 
Union County Utilities Authority, RB, Senior Lease,       
 Ogden Martin, Series A (AMBAC), AMT:       
     5.38%, 6/01/17    1,590  1,581,255 
     5.38%, 6/01/18    1,670  1,629,670 
      19,112,080 
Total Municipal Bonds in New Jersey      169,194,748 
     Puerto Rico — 10.9%       
Education — 2.1%       
Puerto Rico Industrial Tourist Educational Medical       
 & Environmental Control Facilities Financing Authority,     
 RB, University Plaza Project, Series A (MBIA),       
 5.00%, 7/01/33    3,000  2,570,610 
Health — 3.4%       
Puerto Rico Industrial Tourist Educational Medical       
 & Environmental Control Facilities Financing Authority,     
 RB, Hospital De La Concepcion, Series A,       
 6.13%, 11/15/30    4,220  4,241,395 
Housing — 0.8%       
Puerto Rico HFA, RB, Subordinate, Capital Fund       
 Modernization, 5.13%, 12/01/27    1,000  1,001,100 
State — 1.3%       
Puerto Rico Infrastructure Financing Authority, RB, CAB,     
 Series A (b):       
     (AMBAC), 4.36%, 7/01/37    2,250  255,803 
     (FGIC), 4.49%, 7/01/30    2,750  541,695 
Puerto Rico Public Buildings Authority, Refunding       
 RB, Government Facilities, Series M-3 (MBIA),       
 6.00%, 7/01/27    850  840,761 
      1,638,259 
Transportation — 1.0%       
Puerto Rico Highway & Transportation Authority,       
 Refunding RB, Series CC (AGC), 5.50%, 7/01/31    1,185  1,239,048 
Utilities — 2.3%       
Puerto Rico Aqueduct & Sewer Authority, RB, Senior       
 Lien, Series A (AGC), 5.13%, 7/01/47    2,000  1,919,020 
Puerto Rico Electric Power Authority, RB, Series RR       
 (CIFG), 5.00%, 7/01/28    1,000  921,730 
      2,840,750 
Total Municipal Bonds in Puerto Rico      13,531,162 
Total Municipal Bonds — 147.6%      182,725,910 

See Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2009 27

Schedule of Investments (concluded) BlackRock MuniYield New Jersey Insured Fund, Inc. (MJI)
(Percentages shown are based on Net Assets)

Municipal Bonds Transferred to  Par     
Tender Option Bond Trusts (d)  (000)    Value 
Housing — 1.7%       
New Jersey State Housing & Mortgage Finance       
 Agency, RB, Capital Fund Program, Series A (FSA),       
 5.00%, 5/01/27  $ 1,980  $ 2,079,495 
State — 3.2%       
Garden State Preservation Trust, RB, 2005 Series A       
 (FSA), 5.75%, 11/01/28  3,300    3,907,530 
Transportation — 1.4%       
Port Authority of New York & New Jersey, Refunding RB,       
 Consolidated, 152nd Series, AMT, 5.25%, 11/01/35  1,829    1,790,921 
Total Municipal Bonds Transferred to       
Tender Option Bond Trusts — 6.3%      7,777,946 
Total Long-Term Investments       
(Cost — $192,938,671) — 153.9%    190,503,856 
Short-Term Securities  Shares     
CMA New Jersey Municipal Money Fund,       
 0.07% (e)(f)  1,325,347    1,325,347 
Total Short-Term Securities       
(Cost — $1,325,347) — 1.1%      1,325,347 
Total Investments (Cost — $194,264,018*) — 155.0%    191,829,203 
Other Assets Less Liabilities — 0.9%      1,157,665 
Liability for Trust Certificates, Including Interest       
   Expense and Fees Payable — (3.8)%      (4,698,491) 
Preferred Shares, at Redemption Value — (52.1)%      (64,481,933) 
Net Assets Applicable to Common Shares — 100.0%    $123,806,444 
   * The cost and unrealized appreciation (depreciation) of investments as of July 31, 
       2009, as computed for federal income tax purposes, were as follows:   
       Aggregate cost    $189,563,718 
       Gross unrealized appreciation    $ 6,646,058 
       Gross unrealized depreciation      (9,064,942) 
       Net unrealized depreciation    $ (2,418,884) 
(a) Represents a step-up bond that pays an initial coupon rate for the first period and 
       then higher coupon rate for the following periods. Rate shown is as of report date. 
(b) Represents a zero-coupon bond. Rate shown reflects the current yield as of 
       report date.       
 (c) US government securities, held in escrow, are used to pay interest on this security, 
       as well as to retire the bond in full at the date indicated, typically at a premium 
       to par.       
(d) Securities represent bonds transferred to a tender option bond trust in exchange for 
which the Fund acquired residual interest certificates. These securities serve as col- 
       lateral in a financing transaction. See Note 1 of the Notes to Financial Statements 
       for details of municipal bonds transferred to tender option bond trusts. 
(e) Investments in companies considered to be an affiliate of the Fund, for purposes of 
       Section 2(a)(3) of the Investment Company Act of 1940, were as follows: 
  Net     
         Affiliate  Activity    Income 
         CMA New Jersey Municipal Money Fund  526,646    $27,855 
 (f) Represents the current yield as of report date.       

•  Effective August 1, 2008, the Fund adopted Financial Accounting Standards Board 
  Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” 
  (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework 
  for measuring fair values and requires additional disclosures about the use of fair 
  value measurements. Various inputs are used in determining the fair value of invest- 
  ments, which are as follows:   
  •   Level 1 — price quotations in active markets/exchanges for identical securities 
  •   Level 2 — other observable inputs (including, but not limited to: quoted prices for 
    similar assets or liabilities in markets that are active, quoted prices for identical 
     or similar assets or liabilities in markets that are not active, inputs other than 
     quoted prices that are observable for the assets or liabilities (such as interest 
     rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and 
     default rates) or other market-corroborated inputs)   
  •   Level 3 — unobservable inputs based on the best information available in the 
     circumstances, to the extent observable inputs are not available (including the 
     Fund’s own assumptions used in determining the fair value of investments) 
  The inputs or methodology used for valuing securities are not necessarily an indica- 
  tion of the risk associated with investing in those securities. For information about 
  the Fund’s policy regarding valuation of investments and other significant accounting 
  policies, please refer to Note 1 of the Notes to Financial Statements. 
  The following table summarizes the inputs used as of July 31, 2009 in determining 
  the fair valuation of the Fund’s investments:   
  Valuation  Investments in 
  Inputs  Securities 
      Assets 
  Level 1 — Short-Term Securities  $ 1,325,347 
  Level 2 — Long-Term Investments1  190,503,856 
  Level 3  — 
  Total  $ 191,829,203 
    1 See above Schedule of Investments for values in each sector.   

See Notes to Financial Statements.

28 ANNUAL REPORT JULY 31, 2009

Schedule of Investments July 31, 2009 BlackRock MuniYield Pennsylvania Insured Fund (MPA)
(Percentages shown are based on Net Assets)

  Par   
Municipal Bonds  (000)  Value 
     Pennsylvania — 119.6%     
Corporate — 5.0%     
Delaware County IDA, Pennsylvania, RB, Water Facilities,     
 Aqua Pennsylvania Inc. Project, Series B (MBIA), AMT,     
 5.00%, 11/01/36  $ 2,520  $ 2,208,024 
Northumberland County IDA, Refunding RB,     
 Aqua Pennsylvania Inc. Project (MBIA), AMT,     
 5.05%, 10/01/39  6,000  4,921,680 
Pennsylvania Economic Development Financing     
 Authority, RB, Waste Management Inc. Project,     
 Series A, AMT, 5.10%, 10/01/27  1,200  1,050,096 
    8,179,800 
County/City/Special District/School District — 42.7%     
Chambersburg Area School District, GO (MBIA):     
     5.25%, 3/01/26  2,115  2,154,550 
     5.25%, 3/01/27  2,500  2,534,950 
City of Philadelphia Pennsylvania, GO, Refunding,     
 Series A (FSA), 5.25%, 12/15/32  7,000  6,779,780 
Connellsville Area School District, GO, Series B     
 (FSA), 5.00%, 11/15/37  1,000  982,090 
Delaware Valley Regional Financial Authority, RB,     
 Series A (AMBAC), 5.50%, 8/01/28  2,230  2,354,479 
East Stroudsburg Area School District, GO, Series A     
 (MBIA), 7.75%, 9/01/27  2,000  2,386,880 
Erie County Conventional Center Authority, RB (MBIA),     
 5.00%, 1/15/36  8,850  8,486,530 
Marple Newtown School District, GO (FSA)     
 5.00%, 6/01/31  3,500  3,540,460 
North Allegheny School District, GO, Series C (FSA),     
 5.25%, 5/01/27  2,175  2,257,085 
Northeastern York School District, GO, Series B (MBIA),     
 5.00%, 4/01/32  1,585  1,570,038 
Philadelphia Authority for Industrial Development, RB,     
 Series B (FSA), 5.50%, 10/01/11 (a)  2,000  2,217,920 
Philadelphia Redevelopment Authority, RB,     
 Neighborhood Transformation, Series A (MBIA),     
 5.50%, 4/15/22  1,750  1,769,722 
Philadelphia Redevelopment Authority, RB, Qualified     
 Redevelopment Neighborhood, Series B (MBIA), AMT,     
 5.00%, 4/15/27  4,645  4,184,402 
Philadelphia School District, GO:     
     Series B (FGIC), 5.63%, 8/01/12 (a)  10,000  11,377,200 
     Series E, 6.00%, 9/01/38  4,800  5,028,912 
Reading School District, GO (FSA), 5.00%, 1/15/29  6,000  6,079,080 
Scranton School District, Pennsylvania, GO Series A     
 (FSA), 5.00%, 7/15/38  3,500  3,431,680 
Shaler Area School District, Pennsylvania, GO, CAB     
 (Syncora), 4.79%, 9/01/30 (b)  6,145  1,798,703 
York City School District, Pennsylvania, GO, Series A     
 (Syncora), 5.25%, 6/01/22  1,040  1,076,078 
    70,010,539 
Education — 9.0%     
Gettysburg Municipal Authority, RB (MBIA),     
 5.00%, 8/15/23  4,000  3,960,160 
Pennsylvania Higher Educational Facilities Authority, RB,     
 Series AE (MBIA), 4.75%, 6/15/32  8,845  8,545,154 
University of Pittsburgh, Pennsylvania, RB, Capital     
 Project, Series B, 5.00%, 9/15/28  2,200  2,278,078 
    14,783,392 

  Par   
Municipal Bonds  (000)  Value 
     Pennsylvania (continued)     
Health — 11.2%     
Allegheny County Hospital Development Authority,     
 RB, Health Center, UPMC Health, Series B (MBIA),     
 6.00%, 7/01/26  $ 2,000  $ 2,148,040 
County of Lehigh Pennsylvania, RB, Lehigh Valley Health     
 Network, Series A (FSA), 5.00%, 7/01/33  7,995  7,609,241 
Monroe County Hospital Authority, Pennsylvania, RB,     
 Hospital, Pocono Medical Center, 5.13%, 1/01/37  1,265  1,038,110 
Montgomery County IDA, Pennsylvania, RB,     
 ACTS Retirement, Life Community, Series A-1,     
 6.25%, 11/15/29  235  236,746 
Pennsylvania Higher Educational Facilities Authority, RB,     
 UPMC Health System, Series A, 6.00%, 1/15/22  3,000  3,073,260 
Philadelphia Hospitals & Higher Education Facilities     
 Authority, RB, Presbyterian Medical Center,     
 6.65%, 12/01/19 (c)  3,000  3,713,610 
Sayre Health Care Facilities Authority, RB, Guthrie Health,     
 Series A, 5.88%, 12/01/31  590  566,235 
    18,385,242 
Housing — 6.6%     
Pennsylvania HFA, RB, Series 96, Series A, AMT,     
 4.70%, 10/01/37  3,000  2,566,260 
Pennsylvania Housing Finance Agency, RB, S/F,     
 Series 72A (MBIA), AMT, 5.25%, 4/01/21  5,000  5,014,750 
Philadelphia Housing Authority, RB, Series A (FSA),     
 5.50%, 12/01/18  3,000  3,164,280 
    10,745,290 
State — 12.6%     
Commonwealth of Pennsylvania, GO, First Series,     
 5.00%, 3/15/29  1,900  2,002,277 
Pennsylvania Turnpike Commission, RB, Remarketed     
 Series C of 2003 Pennsylvania Turnpike (MBIA),     
 5.00%, 12/01/32  13,600  13,679,696 
State Public School Building Authority, Pennsylvania,     
 RB, CAB, Corry Area School District (FSA)(b):     
     4.85%, 12/15/22  1,980  1,039,243 
     4.87%, 12/15/23  1,980  965,389 
     4.89%, 12/15/24  1,980  901,553 
     4.92%, 12/15/25  1,980  845,440 
State Public School Building Authority, Pennsylvania,     
 RB, Harrisburg School District Project, Series A (AGC),     
 5.00%, 11/15/33  1,200  1,193,232 
    20,626,830 
Transportation — 15.8%     
City of Philadelphia Pennsylvania, RB, Series A (FSA),     
 AMT, 5.00%, 6/15/37  7,500  6,303,825 
Pennsylvania Turnpike Commission, RB, Series A:     
     (AMBAC), 5.50%, 12/01/31  7,800  7,947,108 
     (AMBAC), 5.25%, 12/01/32  350  355,008 
     Sub-Series B (FSA), 5.25%, 6/01/39  3,500  3,513,090 

See Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2009 29

Schedule of Investments (continued) BlackRock MuniYield Pennsylvania Insured Fund (MPA)
(Percentages shown are based on Net Assets)

  Par   
Municipal Bonds  (000)  Value 
     Pennsylvania (continued)     
Transportation (concluded)     
Philadelphia Authority for Industrial Development,     
 RB, Philadelphia Airport System Project, Series A     
 (MBIA), AMT:     
     5.50%, 7/01/17  $ 4,000  $ 4,031,360 
     5.50%, 7/01/18  3,655  3,660,665 
    25,811,056 
Utilities — 16.7%     
Allegheny County Sanitation Authority, Refunding RB,     
 Series A (MBIA), 5.00%, 12/01/30  5,000  4,797,000 
City of Philadelphia Pennsylvania, RB, 1998 General     
 Ordinance, 4th Series (FSA), 5.00%, 8/01/32  4,500  4,409,640 
City of Philadelphia Pennsylvania, RB, Series A,     
 5.25%, 1/01/36  700  678,580 
Delaware County IDA, Pennsylvania, RB, Pennsylvania     
 Suburban Water Co. Project, Series A (AMBAC), AMT,     
 5.15%, 9/01/32  5,500  5,041,520 
Montgomery County IDA, Pennsylvania, RB, Aqua     
 Pennsylvania Inc. Project, Series A, AMT,     
 5.25%, 7/01/42  1,800  1,495,476 
Northampton Boro Municipal Authority, RB, Balance     
 (MBIA), 5.00%, 5/15/34  935  924,453 
Pennsylvania IDA, Pennsylvania, RB, Economic     
 Development (AMBAC), 5.50%, 7/01/20  7,000  7,326,760 
Reading Area Water Authority, Pennsylvania, RB (FSA),     
 5.00%, 12/01/27  2,680  2,762,115 
    27,435,544 
Total Municipal Bonds in Pennsylvania    195,977,693 
     Guam — 1.4%     
Transportation — 1.4%     
Guam International Airport Authority, RB, General,     
 Series C (MBIA), AMT, 5%, 10/01/23  2,500  2,328,950 
Total Municipal Bonds in Guam    2,328,950 
Total Municipal Bonds — 121.0%    198,306,643 
Municipal Bonds Transferred to     
Tender Option Bond Trusts (d)     
     Pennsylvania — 33.7%     
Corporate — 4.5%     
East Stroudsburg Area School District, GO, Refunding     
 (FSA), 5.00%, 9/01/25  7,000  7,352,310 
County/City/Special District/School District — 15.4%     
Commonwealth of Pennsylvania, GO, First Series,     
 5.00%, 3/15/28  5,203  5,525,719 
Pennsylvania State Public School Building Authority,     
 Refunding RB, School District of Philadelphia Project,     
 Series B (FSA), 5.00%, 6/01/26  19,025  19,696,754 
    25,222,473 

Municipal Bonds Transferred to    Par     
Tender Option Bond Trusts (d)    (000)    Value 
     Pennsylvania (concluded)         
Health — 3.3%         
Geisinger Authority, RB, Series A:         
     5.13%, 6/01/34    $ 2,500  $ 2,439,775 
     5.25%, 6/01/39    3,000    2,955,300 
        5,395,075 
State — 10.5%         
State Public School Building Authority, Pennsylvania,       
 RB, Lease, Philadelphia School District Project (FSA),       
 5.25%, 6/01/13 (a)    15,000    17,202,300 
Total Municipal Bonds Transferred to         
Tender Option Bond Trusts — 33.7%        55,172,158 
Total Long-Term Investments         
(Cost — $256,172,784) — 154.7%      253,478,801 
Short-Term Securities    Shares     
CMA Pennsylvania Municipal Money Fund,         
 0.04% (e)(f)    1,555,231    1,555,231 
Total Short-Term Securities         
(Cost — $1,555,231) — 0.9%        1,555,231 
Total Investments (Cost — $257,728,015*) — 155.6%    255,034,032 
Other Assets Less Liabilities — 1.2%        2,016,649 
Liability for Trust Certificates, Including Interest       
   Expense and Fees Payable — (16.3)%        (26,776,546) 
Preferred Shares, at Redemption Value — (40.5)%      (66,355,910) 
Net Assets Applicable to Common Shares — 100.0%    $163,918,225 
* The cost and unrealized appreciation (depreciation) of investments as of July 31, 
       2009, as computed for federal income tax purposes, were as follows:   
       Aggregate cost      $232,133,367 
       Gross unrealized appreciation      $ 9,779,404 
       Gross unrealized depreciation        (13,607,107) 
       Net unrealized depreciation      $ (3,827,703) 
(a) US government securities, held in escrow, are used to pay interest on this security, 
       as well as to retire the bond in full at the date indicated, typically at a premium 
       to par.         
(b) Represents a zero-coupon bond. Rate shown reflects the current yield as of 
       report date.         
 (c) Security is collateralized by Municipal or US Treasury Obligations.   
(d) Securities represent bonds transferred to a tender option bond trust in exchange for 
       which the Fund acquired residual interest certificates. These securities serve as col- 
       lateral in a financing transaction. See Note 1 of the Notes to Financial Statements 
       for details of municipal bonds transferred to tender option bond trusts. 
(e) Investments in companies considered to be an affiliate of the Fund, for purposes of 
       Section 2(a)(3) of the Investment Company Act of 1940, were as follows: 
    Net     
       Affiliate    Activity    Income 
       CMA Pennsylvania Municipal Money Fund  (10,505,931)    $94,725 
 (f) Represents the current yield as of report date.       

See Notes to Financial Statements.

30 ANNUAL REPORT JULY 31, 2009

Schedule of Investments (concluded) BlackRock MuniYield Pennsylvania Insured Fund (MPA)

•  Effective August 1, 2008, the Fund adopted Financial Accounting Standards Board 
  Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” 
  (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for 
  measuring fair values and requires additional disclosures about the use of fair value 
  measurements. Various inputs are used in determining the fair value of investments, 
  which are as follows:   
  •   Level 1 — price quotations in active markets/exchanges for identical securities 
  •   Level 2 — other observable inputs (including, but not limited to: quoted prices for 
     similar assets or liabilities in markets that are active, quoted prices for identical 
     or similar assets or liabilities in markets that are not active, inputs other than 
     quoted prices that are observable for the assets or liabilities (such as interest 
     rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and 
     default rates) or other market-corroborated inputs)   
  •   Level 3 — unobservable inputs based on the best information available in the 
     circumstances, to the extent observable inputs are not available (including the 
     Fund’s own assumptions used in determining the fair value of investments) 
  The inputs or methodology used for valuing securities are not necessarily an indica- 
  tion of the risk associated with investing in those securities. For information about 
  the Fund’s policy regarding valuation of investments and other significant accounting 
  policies, please refer to Note 1 of the Notes to Financial Statements. 
  The following table summarizes the inputs used as of July 31, 2009 in determining 
  the fair valuation of the Fund’s investments:   
  Valuation  Investments in 
  Inputs  Securities 
      Assets 
  Level 1 — Short-Term Securities  $ 1,555,231 
  Level 2 — Long-Term Investments1  253,478,801 
  Level 3  — 
  Total  $ 255,034,032 
    1 See above Schedule of Investments for values in each sector.   

See Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2009 31

Statements of Assets and Liabilities           
  BlackRock  BlackRock  BlackRock  BlackRock  BlackRock  BlackRock 
  MuniHoldings  MuniHoldings  MuniYield  MuniYield  MuniYield  MuniYield 
  California  New Jersey  Insured  Michigan  New Jersey  Pennsylvania 
  Insured  Insured  Investment  Insured  Insured     Insured 
  Fund, Inc.  Fund, Inc.  Fund  Fund, Inc.  Fund, Inc.  Fund 
July 31, 2009  (MUC)  (MUJ)  (MFT)  (MIY)  (MJI)       (MPA) 
     Assets             
Investments at value — unaffiliated1  $866,616,869  $484,859,527  $171,772,020  $403,171,960  $190,503,856  $253,478,801 
Investments at value — affiliated2  20,500,814  3,311,943  2,301,550  7,530,323  1,325,347  1,555,231 
Cash  22,496  70,352  70,553  44,512  42,575  76,050 
Interest receivable  12,636,147  5,280,848  2,430,425  5,207,763  1,785,802  2,855,325 
Investments sold receivable  2,754,591  —  6,988,707  —  —  3,434,694 
Income receivable — affiliated  243  —  —  —  —  — 
Prepaid expenses  61,416  44,172  18,213  37,357  19,705  26,360 
Other assets  55,443  —  —  —  —  — 
Total assets  902,648,019  493,566,842  183,581,468  415,991,915  193,677,285  261,426,461 
     Accrued Liabilities             
Investments purchased payable  —  —  2,518,834  —  —  3,470,982 
Income dividends payable — Common Shares  2,575,091  1,391,575  557,820  1,210,719  563,334  751,977 
Investment advisory fees payable  373,169  224,774  80,323  183,873  85,046  113,324 
Interest expense and fees payable  125,798  38,069  46,117  48,270  14,122  48,178 
Officer’s and Directors’ fees payable  57,341  735  241  563  212  363 
Other affiliates payable  5,546  3,356  1,148  2,796  1,271  1,752 
Other accrued expenses payable  144,625  76,319  36,299  59,789  40,554  37,382 
Total accrued liabilities  3,281,570  1,734,828  3,240,782  1,506,010  704,539  4,423,958 
     Other Liabilities             
Trust certificates3  105,202,904  13,262,930  15,375,937  16,190,000  4,684,369  26,728,368 
Total Liabilities  108,484,474  14,997,758  18,616,719  17,696,010  5,388,908  31,152,326 
     Preferred Shares at Redemption Value             
$25,000 per share liquidation preference, plus             
unpaid dividends4,5  254,019,184  172,712,796  56,530,690  144,665,717  64,481,933  66,355,910 
Net Assets Applicable to Common Shareholders  $540,144,361  $305,856,288  $108,434,059  $253,630,188  $123,806,444  $163,918,225 
     Net Assets Applicable to Common Shareholders Consist of             
Paid-in capital6,7  $585,680,722  $298,669,716  $117,826,735  $263,576,016  $124,136,774  $170,023,959 
Undistributed net investment income  5,609,840  4,051,114  1,298,200  3,834,385  2,480,404  2,028,015 
Accumulated net realized loss  (14,576,778)  (1,177,885)  (9,839,073)  (10,490,262)  (375,919)  (5,439,766) 
Net unrealized appreciation/depreciation  (36,569,423)  4,313,343  (851,803)  (3,289,951)  (2,434,815)  (2,693,983) 
Net Assets Applicable to Common Shareholders  $540,144,361  $305,856,288  $108,434,059  $253,630,188  $123,806,444  $163,918,225 
Net asset value per Common Share  $ 13.21  $ 14.40  $ 12.83  $ 13.93  $ 14.07  $ 14.28 
     1 Investments at cost — unaffiliated  $903,186,292  $480,546,184  $172,623,823  $406,461,911  $192,938,671  $256,172,784 
     2 Investments at cost — affiliated  $ 20,500,814  $ 3,311,943  $ 2,301,550  $ 7,530,323  $ 1,325,347  $ 1,555,231 
     3 Represents short-term floating rate certificates             
issued by tender option bond trusts.             
     4 Preferred Shares outstanding:             
Par value $0.05 per share  —  —  2,261  4,909  1,965  2,654 
Par value $0.10 per share  10,160  6,908  —  877  614  — 
     5 Preferred Shares authorized  15,600  8,120  1 million  6,600  2,940  1 million 
     6 Common Shares outstanding, $0.10 par value  40,874,458  21,245,413  8,451,814  18,206,301  8,802,099  11,480,567 
     7 Common Shares authorized  200 million  200 million  unlimited  200 million  200 million  unlimited 

See Notes to Financial Statements.

32 ANNUAL REPORT JULY 31, 2009

Statements of Operations               
             BlackRock  BlackRock     BlackRock  BlackRock     BlackRock 
          MuniHoldings  MuniYield     MuniYield  MuniYield     MuniYield 
    BlackRock MuniHoldings  New Jersey       Insured     Michigan  New Jersey  Pennsylvania 
    California Insured Fund, Inc. (MUC)       Insured  Investment       Insured       Insured       Insured 
         Period      Fund, Inc.       Fund  Fund, Inc.  Fund, Inc.         Fund 
    July 1, 2009    Year Ended       (MUJ)       (MFT)       (MIY)       (MJI)       (MPA) 
    to July 31,     June 30,  Year Ended  Year Ended  Year Ended  Year Ended  Year Ended 
         2009       2009  July 31, 2009  July 31, 2009  July 31, 2009  July 31, 2009  July 31, 2009 
     Investment Income                   
Interest  $ 3,723,856  $ 44,109,948  $ 24,264,636  $ 9,318,521  $ 21,205,581  $ 9,847,119  $ 12,486,562 
Income — affiliated    1,277    172,350  61,733  41,866  66,508  27,855  94,725 
Total income    3,725,133    44,282,298  24,326,369  9,360,387  21,272,089  9,874,974  12,581,287 
     Expenses                   
Investment advisory    445,040    4,986,639  2,693,614  895,620  2,069,216  955,597  1,268,740 
Professional    69,131    135,692  98,584  74,390  79,723  63,210  65,066 
Commissions for Preferred Shares    34,093    571,754  336,778  118,445  274,029  126,278  145,404 
Accounting services    25,562    243,543  134,653  51,270  100,254  53,502  57,230 
Printing    18,076    46,301  42,146  15,680  36,835  19,341  21,672 
Officer and Directors    11,070    66,439  39,990  14,128  33,073  15,710  20,789 
Transfer agent    7,719    69,294  57,715  34,602  56,881  32,858  40,440 
Custodian    3,607    39,554  25,483  11,916  22,067  11,613  14,407 
Registration    1,260    13,938  9,166  9,583  9,166  9,166  9,166 
Miscellaneous    7,463    120,322  83,522  52,786  64,834  46,687  50,810 
Total expenses excluding interest                   
   expense and fees    623,021    6,293,476  3,521,651  1,278,420  2,746,078  1,333,962  1,693,724 
Interest expense and fees1    62,864    2,005,279  319,947  187,191  388,951  113,530  290,588 
Total expenses    685,885    8,298,755  3,841,598  1,465,611  3,135,029  1,447,492  1,984,312 
Less fees waived by advisor    (71,871)    (974,988)  (278,498)  (26,098)  (52,549)  (11,321)  (36,820) 
Total expenses after fees waived    614,014    7,323,767  3,563,100  1,439,513  3,082,480  1,436,171  1,947,492 
Net investment income    3,111,119    36,958,531  20,763,269  7,920,874  18,189,609  8,438,803  10,633,795 
     Realized and Unrealized Gain (Loss)                 
Net realized gain (loss) from:                   
   Investments    97,759    (7,708,517)  1,281,894  (6,860,292)  (964,623)  369,858  (3,285,490) 
   Financial futures contracts and                   
     forward interest rate swaps    236,178    —  —  —  —  —  (1,039,288) 
    333,937    (7,708,517)  1,281,894  (6,860,292)  (964,623)  369,858  (4,324,778) 
Net change in unrealized                   
   appreciation/depreciation on:                   
   Investments    6,201,772    (29,433,520)  (3,750,895)  919,422  (6,206,801)  (2,778,653)  2,407,228 
   Financial futures contracts and                   
     forward interest rate swaps    (74,560)    74,560  —  —  —  —  227,038 
    6,127,212    (29,358,960)  (3,750,895)  919,422  (6,206,801)  (2,778,653)  2,634,266 
Total realized and unrealized gain (loss)    6,461,149    (37,067,477)  (2,469,001)  (5,940,870)  (7,171,424)  (2,408,795)  (1,690,512) 
     Dividends and Distributions to Preferred Shareholders From             
Net investment income    (108,541)    (5,987,846)  (3,341,606)  (1,287,734)  (2,941,361)  (1,331,483)  (1,555,575) 
Net realized gain    —    —  —  —  —  (95,182)  — 
Total dividends and distributions to                   
   Preferred Shareholders    (108,541)    (5,987,846)  (3,341,606)  (1,287,734)  (2,941,361)  (1,426,665)  (1,555,575) 
Net Increase (Decrease) in Net Assets                   
   Applicable to Common Shareholders                 
   Resulting from Operations  $ 9,463,727  $ (6,096,792)  $ 14,952,662  $ 692,270  $ 8,076,824  $ 4,603,343  $ 7,387,708 
   1 Related to tender option bond trusts.                 

See Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2009 33

Statements of Changes in Net Assets  BlackRock MuniHoldings California Insured Fund, Inc. (MUC) 
  Period     
  July 1, 2009  Year Ended 
  to July 31,  June 30, 
Increase (Decrease) in Net Assets:  2009  2009  2008 
     Operations       
Net investment income  $ 3,111,119  $ 36,958,531  $ 39,376,787 
Net realized gain (loss)  333,937  (7,708,517)  7,928,113 
Net change in unrealized appreciation/depreciation  6,127,212  (29,358,960)  (32,808,030) 
Dividends to Preferred Shareholders from net investment income  (108,541)  (5,987,846)  (13,165,738) 
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations  9,463,727  (6,096,792)  1,331,132 
     Dividends to Common Shareholders From       
Net investment income  (2,575,091)  (26,404,900)  (27,627,211) 
     Net Assets Applicable to Common Shareholders       
Total increase (decrease) in net assets applicable to Common Shareholders  6,888,636  (32,501,692)  (26,296,079) 
Beginning of period  533,255,725  565,757,417  592,053,496 
End of period  $540,144,361  $533,255,725  $565,757,417 
Undistributed net investment income  $ 5,609,840  $ 5,182,353  $ 592,505 

  BlackRock MuniHoldings New Jersey Insured Fund, Inc. (MUJ) 
                                                                                  Year Ended 
                                                                                      July 31, 
Increase (Decrease) in Net Assets:  2009  2008 
     Operations     
Net investment income  $ 20,763,269  $ 19,736,589 
Net realized gain (loss)  1,281,894  (1,469,777) 
Net change in unrealized appreciation/depreciation  (3,750,895)  (8,375,097) 
Dividends to Preferred Shareholders from net investment income  (3,341,606)  (6,691,973) 
Net increase in net assets applicable to Common Shareholders resulting from operations  14,952,662  3,199,742 
     Dividends to Common Shareholders From     
Net investment income  (14,043,218)  (14,021,973) 
     Net Assets Applicable to Common Shareholders     
Total increase (decrease) in net assets applicable to Common Shareholders  909,444  (10,822,231) 
Beginning of year  304,946,844  315,769,075 
End of year  $305,856,288  $304,946,844 
Undistributed net investment income  $ 4,051,114  $ 747,397 

See Notes to Financial Statements.

34 ANNUAL REPORT JULY 31, 2009

Statements of Changes in Net Assets  BlackRock MuniYield Insured Investment Fund (MFT) 
    Period   
    November 1,   
  Year Ended  2007  Year Ended 
  July 31,  to July 31,  October 31, 
Increase (Decrease) in Net Assets:  2009  2008  2007 
     Operations       
Net investment income  $ 7,920,874  $ 5,967,801  $ 8,056,928 
Net realized gain (loss)  (6,860,292)  (372,939)  176,914 
Net change in unrealized appreciation/depreciation  919,422  (7,756,323)  (4,348,589) 
Dividends to Preferred Shareholders from net investment income  (1,287,734)  (1,872,136)  (2,631,621) 
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations  692,270  (4,033,597)  1,253,632 
     Dividends to Common Shareholders From       
Net investment income  (5,707,468)  (4,090,678)  (5,721,878) 
     Net Assets Applicable to Common Shareholders       
Total decrease in net assets applicable to Common Shareholders  (5,015,198)  (8,124,275)  (4,468,246) 
Beginning of period  113,449,257  121,573,532  126,041,778 
End of period  $108,434,059  $113,449,257  $121,573,532 
Undistributed net investment income  $ 1,298,200  $ 373,391  $ 339,357 

  BlackRock MuniYield Michigan Insured Fund, Inc. (MIY) 
    Period   
    November 1,   
  Year Ended  2007  Year Ended 
  July 31,  to July 31,  October 31, 
Increase (Decrease) in Net Assets:  2009  2008  2007 
     Operations       
Net investment income  $ 18,189,609  $ 12,731,272  $ 19,208,577 
Net realized gain (loss)  (964,623)  (1,246,561)  1,570,157 
Net change in unrealized appreciation/depreciation  (6,206,801)  (13,574,409)  (9,721,365) 
Dividends to Preferred Shareholders from net investment income  (2,941,361)  (4,212,108)  (5,850,606) 
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations  8,076,824  (6,301,806)  5,206,763 
     Dividends to Common Shareholders From       
Net investment income  (12,252,841)  (9,485,483)  (12,962,886) 
     Net Assets Applicable to Common Shareholders       
Total decrease in net assets applicable to Common Shareholders  (4,176,017)  (15,787,289)  (7,756,123) 
Beginning of period  257,806,205  273,593,494  281,349,617 
End of period  $253,630,188  $257,806,205  $273,593,494 
Undistributed net investment income  $ 3,834,385  $ 825,729  $ 1,796,256 

See Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2009 35

Statements of Changes in Net Assets  BlackRock MuniYield New Jersey Insured Fund, Inc. (MJI) 
    Period   
    November 1,   
  Year Ended  2007  Year Ended 
                             July 31,  to July 31,  October 31, 
Increase (Decrease) in Net Assets:  2009  2008  2007 
     Operations       
Net investment income  $ 8,438,803  $ 6,056,221  $ 8,403,981 
Net realized gain (loss)  369,858  (17,732)  588,462 
Net change in unrealized appreciation/depreciation  (2,778,653)  (6,708,329)  (4,321,927) 
Dividends and distributions to Preferred Shareholders from:       
   Net investment income  (1,331,483)  (1,835,167)  (2,420,847) 
Net realized gain  (95,182)  (42,392)  (23,780) 
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations  4,603,343  (2,547,399)  2,225,889 
     Dividends and Distributions to Common Shareholders From       
Net investment income  (5,879,803)  (4,289,500)  (5,747,771) 
Net realized gain  (150,243)  (103,918)  (70,742) 
Decrease in net assets resulting from dividends and distributions to Common Shareholders  (6,030,046)  (4,393,418)  (5,818,513) 
     Net Assets Applicable to Common Shareholders       
Total decrease in net assets applicable to Common Shareholders  (1,426,703)  (6,940,817)  (3,592,624) 
Beginning of period  125,233,147  132,173,964  135,766,588 
End of period  $123,806,444  $125,233,147  $132,173,964 
Undistributed net investment income  $ 2,480,404  $ 1,253,004  $ 1,307,514 

  BlackRock MuniYield Pennsylvania Insured Fund (MPA) 
    Period   
    November 1,   
  Year Ended  2007  Year Ended 
  July 31,  to July 31,  October 31, 
Increase (Decrease) in Net Assets:  2009  2008  2007 
     Operations       
Net investment income  $ 10,633,795  $ 8,207,974  $ 11,615,514 
Net realized gain (loss)  (4,324,778)  (312,302)  2,337,245 
Net change in unrealized appreciation/depreciation  2,634,266  (13,306,589)  (6,999,004) 
Dividends to Preferred Shareholders from net investment income  (1,555,575)  (2,559,463)  (3,638,710) 
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations  7,387,708  (7,970,380)  3,315,045 
     Dividends to Common Shareholders From       
Net investment income  (7,588,655)  (5,717,322)  (7,910,111) 
     Net Assets Applicable to Common Shareholders       
Total decrease in net assets applicable to Common Shareholders  (200,947)  (13,687,702)  (4,595,066) 
Beginning of period  164,119,172  177,806,874  182,401,940 
End of period  $163,918,225  $164,119,172  $177,806,874 
Undistributed net investment income  $ 2,028,015  $ 559,654  $ 677,381 

See Notes to Financial Statements.

36 ANNUAL REPORT JULY 31, 2009

Statements of Cash Flows  BlackRock MuniHoldings California Insured Fund, Inc. (MUC) 
    Period   
    July 1, 2009   Year Ended 
    to July 31,  June 30, 
    2009  20091 
     Cash Provided by Operating Activities       
Net increase (decrease) in net assets resulting from operations, excluding dividends to Preferred Shareholders  $ 9,572,268  $ (108,946) 
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by operating activities:     
   (Increase) decrease in collateral on financial futures contracts    400,000  (400,000) 
   (Increase) decrease in interest receivable    (253,030)  1,327,741 
   (Increase) decrease in income receivable — affiliated    460  (520) 
   (Increase) decrease in margin variation receivable    37,500  (37,500) 
   Increase in prepaid expenses and other assets    (31,723)  (1,191) 
   Increase in other assets    (11,157)  (29,628) 
   (Decrease) increase in investment advisory fees payable    27,425  (53,298) 
   Decrease in interest expense and fees payable    (301,506)  (14,149) 
   (Decrease) increase in other affiliates payable    986  (3,071) 
   (Decrease) increase in other accrued expenses payable    34,286  (66,047) 
   Increase in Officer’s and Directors’ fees payable    11,555  27,756 
Net realized and unrealized gain (loss)    (6,224,971)  37,142,037 
Amortization of premium and discount on investments    272,784  1,936,309 
Proceeds from sales of long-term investments    9,493,317  225,130,966 
Purchases of long-term investments    (20,265,112)  (162,724,235) 
Net (purchases) proceeds of short-term securities    43,299,435  (32,992,873) 
Net cash provided by operating activities    36,062,517  69,133,351 
     Cash Used for Financing Activities       
Cash receipts from trust certificates    —  33,369,587 
Cash payments for trust certificates    —  (70,511,683) 
Payments of redemptions of Preferred Shares    (33,375,000)  — 
Cash dividends paid to Common Shareholders    (2,575,091)  (25,996,155) 
Cash dividends paid to Preferred Shareholders    (107,511)  (6,056,925) 
Cash used for financing activities    (36,057,602)  (69,195,176) 
     Cash       
Net increase (decrease) in cash    4,915  (61,825) 
Cash at beginning of period    17,581  79,406 
Cash at end of period    $ 22,496  $ 17,581 
     Cash Flow Information       
Cash paid during the period for interest    $ 364,370  $ 2,019,428 
   1 Amounts have been reclassified to conform with current period presentation.       
       A Statement of Cash Flows is presented when a Fund had a significant amount of borrowing during the period, based on the average borrowing outstanding in relation to average 
       total assets.       

See Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2009 37

Financial Highlights      BlackRock MuniHoldings California Insured Fund, Inc. (MUC) 
  Period               
  July 1, 2009               
  to July 31,      Year Ended June 30,     
  2009    2009  2008  2007    2006  2005 
     Per Share Operating Performance                 
Net asset value, beginning of period  $ 13.05  $ 13.84  $ 14.48  $ 14.44  $ 15.40  $ 14.73 
Net investment income1  0.08    0.90  0.96  1.01    1.05  1.07 
Net realized and unrealized gain (loss)  0.14    (0.89)  (0.60)  0.07    (0.85)  0.69 
Dividends to Preferred Shareholders from net investment income  (0.00)2    (0.15)  (0.32)  (0.31)    (0.25)  (0.14) 
Net increase (decrease) from investment operations  0.22    (0.14)  0.04  0.77    (0.05)  1.62 
Dividends to Common Shareholders from net investment income  (0.06)    (0.65)  (0.68)  (0.73)    (0.91)  (0.95) 
Net asset value, end of period  $ 13.21  $ 13.05  $ 13.84  $ 14.48  $ 14.44  $ 15.40 
Market price, end of period  $ 12.18  $ 11.07  $ 12.24  $ 13.92  $ 13.94  $ 14.97 
     Total Investment Return3                 
Based on net asset value  1.75%4    0.21%  0.64%  5.46%    (0.29)%  11.56% 
Based on market price  10.59%4    (3.88)%  (7.41)%  5.02%    (0.98)%  19.56% 
     Ratios to Average Net Assets Applicable to Common Shares                 
Total expenses5  1.34%6,7  1.59%  1.58%  1.66%    1.41%  1.22% 
Total expenses after fees waived5  1.19%6,7  1.40%  1.50%  1.60%    1.35%  1.16% 
Total expenses after fees waived and excluding interest expense and fees5,8  1.06%6,7  1.02%  1.14%  1.12%    1.10%  1.11% 
Net investment income5  6.59%6,7  7.08%  6.72%  6.81%    7.01%  6.99% 
Dividends to Preferred Shareholders  0.23%6    1.15%  2.22%  2.11%    1.68%  0.93% 
Net investment income to Common Shareholders  6.36%6,7  5.93%  4.50%  4.70%    5.33%  6.06% 
     Supplemental Data                 
Net assets applicable to Common Shareholders, end of period (000)  $ 540,144  $ 533,256  $ 565,757  $ 592,053  $ 589,404  $ 626,109 
Preferred Shares outstanding at $25,000 liquidation preference,                 
   end of period (000)  $ 254,000  $ 287,375  $ 287,375  $ 390,000  $ 390,000  $ 390,000 
Portfolio turnover  1%    19%  43%  35%    34%  47% 
Asset coverage per Preferred Share at $25,000 liquidation preference,                 
   end of period  $ 78,166  $ 71,392  $ 74,2259  $ 62,9659  $ 62,7959  $ 65,1409 
   1 Based on average shares outstanding.                 
   2 Amount is less than $(0.01) per share.                 
   3 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment 
       returns exclude effects of sales charges.                 
   4 Aggregate total investment return.                 
   5 Do not reflect the effect of dividends to Preferred Shareholders.                 
   6 Annualized.                 
   7 Certain non-recurring expenses have been included in the ratio but not annualized. If these expenses were annualized, the ratios of total expenses, total expenses after fees 
waived, total expenses after fees waived and excluding interest expense and fees, net investment income and net investment income to Common Shareholders would have been 
       1.43%, 1.28%, 1.15%, 6.50% and 6.27%, respectively.                 
   8 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option 
       bond trusts.                 
   9 Amounts have been recalculated to conform with current period presentation.                 

See Notes to Financial Statements.

38 ANNUAL REPORT JULY 31, 2009

Financial Highlights  BlackRock MuniHoldings New Jersey Insured Fund, Inc. (MUJ) 
      Year Ended July 31,     
  2009  2008  2007    2006  2005 
     Per Share Operating Performance             
Net asset value, beginning of year  $ 14.35  $ 14.86  $ 14.91  $ 15.62  $ 15.03 
Net investment income1  0.98  0.93  1.03    1.03  1.04 
Net realized and unrealized gain (loss)  (0.11)  (0.47)  (0.03)    (0.61)  0.66 
Dividends to Preferred Shareholders from net investment income  (0.16)  (0.31)  (0.31)    (0.26)  (0.16) 
Net increase from investment operations.  0.71  0.15  0.69    0.16  1.54 
Dividends to Common Shareholders from net investment income  (0.66)  (0.66)  (0.74)    (0.87)  (0.95) 
Net asset value, end of year  $ 14.40  $ 14.35  $ 14.86  $ 14.91  $ 15.62 
Market price, end of year  $ 13.38  $ 12.93  $ 14.40  $ 14.98  $ 15.89 
     Total Investment Return2             
Based on net asset value  6.13%  1.35%  4.71%    1.09%  10.63% 
Based on market price  9.45%  (5.76)%  0.99%    (0.16)%  19.37% 
     Ratios to Average Net Assets Applicable to Common Shares             
Total expenses3  1.30%  1.30%  1.45%    1.45%  1.31% 
Total expenses after fees waived3  1.21%  1.23%  1.40%    1.39%  1.25% 
Total expenses after fees waived and excluding interest expense and fees3,4  1.10%  1.15%  1.17%    1.15%  1.14% 
Net investment income3  7.04%  6.22%  6.77%    6.80%  6.69% 
Dividends to Preferred Shareholders  1.13%  2.11%  2.03%    1.72%  1.02% 
Net investment income to Common Shareholders  5.91%  4.11%  4.74%    5.08%  5.67% 
     Supplemental Data             
Net assets applicable to Common Shareholders, end of year (000)  $ 305,856  $ 304,947  $ 315,769  $ 315,649  $ 328,853 
Preferred Shares outstanding at $25,000 liquidation preference, end of year (000)  $ 172,700  $ 176,700  $ 203,000  $ 203,000  $ 203,000 
Portfolio turnover  9%  12%  17%    16%  29% 
Asset coverage, end of year per $1,000  $ 2,7715  $ 2,7265  $ 2,5565  $ 2,5555  $ 2,620 
   1 Based on average shares outstanding.             
   2 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment 
       returns exclude effects of sales charges.             
   3 Do not reflect the effect of dividends to Preferred Shareholders.             
   4 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option 
       bond trusts.             
   5 Asset coverage per Preferred Share at $25,000 liquidation preference for the years ended 2009, 2008, 2007 and 2006 were $69,278, $68,152, $63,898 and $63,884, respectively. 

See Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2009 39

Financial Highlights        BlackRock MuniYield Insured Investment Fund (MFT) 
    Period           
  Year Ended November 1, 2007         
  July 31,  to July 31,      Year Ended October 31,   
  2009  2008    2007  2006  2005  2004 
     Per Share Operating Performance               
Net asset value, beginning of period  $ 13.42  $ 14.38  $ 14.91  $ 14.72  $ 15.22  $ 15.04 
Net investment income1  0.94  0.71    0.95  0.97  0.98  0.98 
Net realized and unrealized gain (loss)  (0.70)  (0.97)    (0.49)  0.24  (0.38)  0.20 
Dividends to Preferred Shareholders from net investment income  (0.15)  (0.22)    (0.31)  (0.27)  (0.17)  (0.07) 
Net increase from investment operations  0.09  (0.48)    0.15  0.94  0.43  1.11 
Dividends to Common Shareholders from net investment income  (0.68)  (0.48)    (0.68)  (0.75)  (0.90)  (0.93) 
Capital charges resulting from issuance of Preferred Shares  —  —    —  —  (0.03)  — 
Net asset value, end of period  $ 12.83  $ 13.42  $ 14.38  $ 14.91  $ 14.72  $ 15.22 
Market price, end of period  $ 11.80  $ 11.75  $ 12.74  $ 14.21  $ 14.18  $ 14.98 
     Total Investment Return2               
Based on net asset value  1.94%  (2.97)%3    1.39%  6.87%  2.72%  7.98% 
Based on market price  7.08%  (4.11)%3    (5.75)%  5.73%  0.54%  12.73% 
     Ratios to Average Net Assets Applicable to Common Shares               
Total expenses4  1.40%  1.51%5    1.54%  1.46%  1.38%  1.28% 
Total expenses after fees waived4  1.37%  1.49%5    1.52%  1.45%  1.38%  1.27% 
Total expenses after fees waived and excluding interest expense and fees4,6  1.19%  1.18%5    1.20%  1.17%  1.20%  1.09% 
Net investment income4  7.54%  6.60%5    6.53%  6.58%  6.50%  6.54% 
Dividends to Preferred Shareholders  1.23%  2.07%5    2.13%  1.87%  1.13%  0.48% 
Net investment income to Common Shareholders  6.31%  4.53%5    4.40%  4.71%  5.37%  6.06% 
     Supplemental Data               
Net assets applicable to Common Shareholders, end of period (000)  $ 108,434  $ 113,449  $ 121,574  $ 126,042  $ 124,422  $ 128,455 
Preferred Shares outstanding at $25,000 liquidation preference,               
   end of period (000)  $ 56,525  $ 62,250  $ 72,000  $ 72,000  $ 72,000  $ 60,000 
Portfolio turnover.  43%  21%    26%  34%  52%  28% 
Asset coverage per Preferred Shares at $25,000 liquidation preference,               
   end of period  $ 72,961  $ 70,5697  $ 67,2207  $ 68,7697  $ 68,2127  $ 78,5287 
   1 Based on average shares outstanding.               
   2 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment 
       returns exclude effects of sales charges.               
   3 Aggregate total investment return.               
   4 Do not reflect the effect of dividends to Preferred Shareholders.               
   5 Annualized.               
   6 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option 
       bond trusts.               
   7 Amounts have been recalculated to conform with current year presentation.               

See Notes to Financial Statements.

40 ANNUAL REPORT JULY 31, 2009

Financial Highlights      BlackRock MuniYield Michigan Insured Fund, Inc. (MIY) 
    Period           
  Year Ended November 1, 2007         
  July 31,  to July 31,      Year Ended October 31,   
  2009  2008    2007  2006  2005  2004 
     Per Share Operating Performance               
Net asset value, beginning of period  $ 14.16  $ 15.03  $ 15.45  $ 15.32  $ 15.96  $ 15.94 
Net investment income1  1.00  0.70    1.06  1.04  1.08  1.06 
Net realized and unrealized gain (loss)  (0.40)  (0.82)    (0.45)  0.22  (0.54)  0.03 
Dividends to Preferred Shareholders from net investment income  (0.16)  (0.23)    (0.32)  (0.29)  (0.18)  (0.07) 
Net increase (decrease) from investment operations  0.44  (0.35)    0.29  0.97  0.36  1.02 
Dividends to Common Shareholders from net investment income  (0.67)  (0.52)    (0.71)  (0.84)  (0.98)  (1.00) 
Capital charges with respect to the issuance of Preferred Shares  —  —    —  —  (0.02)  — 
Net asset value, end of period  $ 13.93  $ 14.16  $ 15.03  $ 15.45  $ 15.32  $ 15.96 
Market price, end of period  $ 12.25  $ 12.30  $ 13.40  $ 14.67  $ 15.31  $ 15.37 
     Total Investment Return2               
Based on net asset value  4.66%  (2.02)%3    2.30%  6.64%  2.24%  7.04% 
Based on market price  5.95%  (4.54)%3    (3.95)%  1.32%  6.10%  11.85% 
     Ratios to Average Net Assets Applicable to Common Shares               
Total expenses4  1.27%  1.42%5    1.55%  1.62%  1.42%  1.22% 
Total expenses after fees waived4  1.25%  1.40%5    1.55%  1.61%  1.42%  1.19% 
Total expenses after fees waived and excluding interest expense and fees4,6  1.09%  1.13%5    1.12%  1.11%  1.10%  1.00% 
Net investment income4  7.37%  6.19%5    6.95%  6.84%  6.84%  6.69% 
Dividends to Preferred Shareholders  1.19%  2.05%5    2.12%  1.87%  1.13%  0.46% 
Net investment income to Common Shareholders  6.18%  4.14%5    4.83%  4.97%  5.71%  6.23% 
     Supplemental Data               
Net assets applicable to Common Shareholders, end of period (000)  $ 253,630  $ 257,806  $ 273,593  $ 281,350  $ 278,250  $ 289,695 
Preferred Shares outstanding at $25,000 liquidation preference,               
   end of period (000)  $ 144,650  $ 144,650  $ 165,000  $ 165,000  $ 165,000  $ 140,000 
Portfolio turnover  9%  21%    10%  15%  25%  32% 
Asset coverage, end of period per $1,000  $ 2,7537  $ 2,7827  $ 2,6587  $ 2,7057  $ 2,686  $ 3,069 
   1 Based on average shares outstanding.               
   2 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment 
       returns exclude effects of sales charges.               
   3 Aggregate total investment return.               
   4 Do not reflect the effect of dividends to Preferred Shareholders.               
   5 Annualized.               
   6 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option 
       bond trusts.               
   7 Asset coverage per Preferred Share at $25,000 liquidation preference for the periods ended 2009, 2008, 2007 and 2006 were $68,838, $69,563, $66,461 and $67,638, 
       respectively.               

See Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2009 41

Financial Highlights    BlackRock MuniYield New Jersey Insured Fund, Inc. (MJI) 
    Period           
  Year Ended November 1, 2007         
  July 31,  to July 31,      Year Ended October 31,   
  2009  2008    2007  2006  2005  2004 
     Per Share Operating Performance               
Net asset value, beginning of period  $ 14.23  $ 15.02  $ 15.42  $ 15.07  $ 15.46  $ 15.25 
Net investment income1  0.96  0.69    0.96  0.97  0.96  1.03 
Net realized and unrealized gain (loss)  (0.27)  (0.76)    (0.42)  0.36  (0.27)  0.21 
Dividends and distributions to Preferred Shareholders from:               
     Net investment income  (0.15)  (0.21)    (0.28)  (0.25)  (0.16)  (0.06) 
     Net realized gain  (0.01)  (0.01)         (0.00)2  —  —  — 
Net increase (decrease) from investment operations  0.53  (0.29)    0.26  1.08  0.53  1.18 
Dividends and distributions to Common Shareholders from:               
     Net investment income  (0.67)  (0.49)    (0.65)  (0.73)  (0.92)  (0.94) 
     Net realized gain  (0.02)  (0.01)    (0.01)  —  —  — 
Total dividends and distributions to Common Shareholders  (0.69)  (0.50)    (0.66)  (0.73)  (0.92)  (0.94) 
Capital charges with respect to the issuance of Preferred Shares  —  —    —  —  0.003  (0.03) 
Net asset value, end of period  $ 14.07  $ 14.23  $ 15.02  $ 15.42  $ 15.07  $ 15.46 
Market price, end of period  $ 12.82  $ 12.81  $ 13.70  $ 14.96  $ 14.65  $ 15.16 
     Total Investment Return4               
Based on net asset value  4.94%  (1.67)%5    2.00%  7.50%  3.49%  7.99% 
Based on market price  6.22%  (2.95)%5    (4.10)%  7.28%  2.60%  12.23% 
     Ratios to Average Net Assets Applicable to Common Shares               
Total expenses6  1.22%  1.24%7    1.37%  1.59%  1.52%  1.35% 
Total expenses after fees waived6  1.21%  1.24%7    1.37%  1.59%  1.52%  1.33% 
Total expenses after fees waived and excluding interest expense and fees6,8  1.11%  1.18%7    1.17%  1.15%  1.16%  1.06% 
Net investment income6  7.10%  6.18%7    6.30%  6.46%  6.21%  6.79% 
Dividends to Preferred Shareholders  1.12%  1.87%7    1.81%  1.63%  1.03%  0.42% 
Net investment income to Common Shareholders  5.98%  4.31%7    4.49%  4.83%  5.18%  6.37% 
     Supplemental Data               
Net assets applicable to Common Shareholders, end of period (000)  $ 123,806  $ 125,233  $ 132,174  $ 135,767  $ 132,622  $ 135,370 
Preferred Shares outstanding at $25,000 liquidation preference,               
   end of period (000)  $ 64,475  $ 65,700  $ 73,500  $ 73,500  $ 73,500  $ 73,500 
Portfolio turnover  8%  13%    23%  11%  29%  16% 
Asset coverage per Preferred Share at $25,000 liquidation preference,               
   end of period  $ 73,008  $ 72,6669  $ 69,9659  $ 71,1859  $ 70,1109  $ 71,0509 
   1 Based on average shares outstanding.               
   2 Amount is less than ($0.01) per share.               
   3 Amount is less than $0.01 per share.               
   4 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment 
       returns exclude effects of sales charges.               
   5 Aggregate total investment return.               
   6 Do not reflect the effect of dividends to Preferred Shareholders.               
   7 Annualized.               
   8 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option 
       bond trusts.               
   9 Amounts have been recalculated to conform with current year presentation.               

See Notes to Financial Statements.

42 ANNUAL REPORT JULY 31, 2009

Financial Highlights      BlackRock MuniYield Pennsylvania Insured Fund (MPA) 
    Period           
         Year Ended November 1, 2007         
  July 31,  to July 31,      Year Ended October 31,   
  2009  2008    2007  2006  2005  2004 
     Per Share Operating Performance               
Net asset value, beginning of period  $ 14.30  $ 15.49  $ 15.89  $ 15.57  $ 16.04  $ 15.56 
Net investment income1  0.93  0.71    1.01  1.01  1.05  1.08 
Net realized and unrealized gain (loss)  (0.15)  (1.18)    (0.40)  0.36  (0.35)  0.48 
Dividends to Preferred Shareholders from net investment income  (0.14)  (0.22)    (0.32)  (0.27)  (0.19)  (0.08) 
Net increase (decrease) from investment operations  0.64  (0.69)    0.29  1.10  0.51  1.48 
Dividends to Common Shareholders from net investment income  (0.66)  (0.50)    (0.69)  (0.78)  (0.96)  (1.00) 
Capital charges with respect to the issuance of Preferred Shares  —  —    —             (0.00)2  (0.02)  — 
Net asset value, end of period  $ 14.28  $ 14.30  $ 15.49  $ 15.89  $ 15.57  $ 16.04 
Market price, end of period  $ 12.87  $ 12.43  $ 13.67  $ 14.60  $ 14.91  $ 15.61 
     Total Investment Return3               
Based on net asset value  5.88%  (4.18)%4    2.19%  7.52%  3.16%  10.15% 
Based on market price  9.78%  (5.62)%4    (1.85)%  3.16%  1.51%  12.63% 
     Ratios to Average Net Assets Applicable to Common Shares               
Total expenses5  1.27%  1.50%6    1.72%  1.70%  1.70%  1.33% 
Total expenses after fees waived5  1.25%  1.48%6    1.72%  1.69%  1.69%  1.32% 
Total expenses after fees waived and excluding interest expense and fees5,7  1.06%  1.13%6    1.13%  1.13%  1.13%  1.05% 
Net investment income5  6.82%  6.18%6    6.44%  6.49%  6.56%  6.89% 
Dividends to Preferred Shareholders  1.00%  1.93%6    2.02%  1.76%  1.17%  0.51% 
Net investment income to Common Shareholders  5.82%  4.25%6    4.42%  4.73%  5.39%  6.38% 
     Supplemental Data               
Net assets applicable to Common Shareholders, end of period (000)  $ 163,918  $ 164,119  $ 177,807  $ 182,402  $ 178,771  $ 183,877 
Preferred Shares outstanding at $25,000 liquidation preference,               
   end of period (000)  $ 66,350  $ 77,400  $ 102,000  $ 102,000  $ 102,000  $ 88,000 
Portfolio turnover  18%  24%    35%  25%  42%  41% 
Asset coverage per Preferred Share at $25,000 liquidation preference,               
   end of period  $ 86,765  $ 78,0188  $ 68,5858  $ 69,7178  $ 68,8278  $ 77,2418 
   1 Based on average shares outstanding.               
   2 Amount is less than ($0.01) per share.               
   3 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment 
       returns exclude effects of sales charges.               
   4 Aggregate total investment return.               
   5 Do not reflect the effect of dividends to Preferred Shareholders.               
   6 Annualized.               
   7 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option 
       bond trusts.               
   8 Amounts have been recalculated to conform with current year presentation.               

See Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2009 43

Notes to Financial Statements

1. Organization and Significant Accounting Policies:

BlackRock MuniHoldings California Insured Fund, Inc. (“MuniHoldings
California Insured”), BlackRock MuniHoldings New Jersey Insured Fund,
Inc. (“MuniHoldings New Jersey Insured), BlackRock MuniYield Insured
Investment Fund (formerly MuniYield BlackRock Florida Insured Fund)
(“MuniYield Insured Investment”), BlackRock MuniYield Michigan Insured
Fund, Inc. (“MuniYield Michigan Insured”), BlackRock MuniYield New Jersey
Insured Fund, Inc. (“MuniYield New Jersey Insured”) and BlackRock
MuniYield Pennsylvania Insured Fund (“MuniYield Pennsylvania Insured”)
(collectively, the “Funds” or individually, as the “Fund”) are registered
under the Investment Company Act of 1940, as amended (the “1940
Act”), as non-diversified, closed-end management investment companies.
MuniHoldings California Insured, MuniHoldings New Jersey Insured,
MuniYield Michigan Insured and MuniYield New Jersey Insured are organ-
ized as Maryland corporations. MuniYield Insured Investment and MuniYield
Pennsylvania Insured are organized as Massachusetts business trusts. The
Funds’ financial statements are prepared in conformity with accounting
principles generally accepted in the United States of America, which may
require the use of management accruals and estimates. Actual results may
differ from these estimates. The Boards of Directors and the Boards of
Trustees of the Funds are referred to throughout this report as the “Board
of Directors” or the “Board.” MuniHoldings California Insured’s year end
changed to July 31. The Funds determine and make available for publica-
tion the net asset value of their Common Shares on a daily basis.

The following is a summary of significant accounting policies followed by
the Funds:

Valuation of Investments: Municipal investments (including commitments
to purchase such investments on a “when-issued” basis) are valued on the
basis of prices provided by dealers or pricing services selected under the
supervision of each Fund’s Board. In determining the value of a particular
investment, pricing services may use certain information with respect to
transactions in such investments, quotations from dealers, pricing matrixes,
market transactions in comparable investments and information with
respect to various relationships between investments. Swap agreements
are valued by utilizing quotes received daily by each Fund’s pricing service
or through brokers, which are derived using daily swap curves and trades
of underlying securities. Financial futures contracts traded on exchanges
are valued at their last sale price. Short-term securities with maturities less
than 60 days may be valued at amortized cost, which approximates fair
value. Investments in open-end investment companies are valued at net
asset value each business day.

In the event that application of these methods of valuation results in a
price for an investment which is deemed not to be representative of the
market value of such investment, the investment will be valued by a
method approved by each Fund’s Board as reflecting fair value (“Fair Value
Assets”). When determining the price for Fair Value Assets, the investment
advisor and/or sub-advisor seeks to determine the price that each Fund
might reasonably expect to receive from the current sale of that asset in
an arm’s-length transaction. Fair value determinations shall be based upon
all available factors that the investment advisor and/or sub-advisor deems

relevant. The pricing of all Fair Value Assets is subsequently reported to the
Board or a committee thereof.

Forward Commitments and When-Issued Delayed Delivery Securities: The
Funds may purchase securities on a when-issued basis and may purchase
or sell securities on a forward commitment basis. Settlement of such trans-
actions normally occurs within a month or more after the purchase or sale
commitment is made. The Funds may purchase securities under such con-
ditions only with the intention of actually acquiring them, but may enter
into a separate agreement to sell the securities before the settlement date.
Since the value of securities purchased may fluctuate prior to settlement,
the Funds may be required to pay more at settlement than the security
is worth. In addition, the purchaser is not entitled to any of the interest
earned prior to settlement. When purchasing a security on a delayed-
delivery basis, the Funds assume the rights and risks of ownership of the
security, including the risk of price and yield fluctuations. In the event of
default by the counterparty, the Fund’s maximum amount of loss is the
unrealized gain of the commitment.

Municipal Bonds Transferred to Tender Option Bond Trusts: The Funds
leverage their assets through the use of tender option bond trusts (“TOBs”)
A TOB is established by a third party sponsor forming a special purpose
entity, into which one or more funds, or an agent on behalf of the funds,
transfers municipal bonds. Other funds managed by the investment advisor
may also contribute municipal bonds to a TOB into which a Fund has con-
tributed bonds. A TOB typically issues two classes of beneficial interests:
short-term floating rate certificates, which are sold to third party investors,
and residual certificates (“TOB Residuals”), which are generally issued to
the participating funds that made the transfer. The TOB Residuals held by a
Fund include the right of the Fund (1) to cause the holders of a propor-
tional share of the floating rate certificates to tender their certificates at
par, and (2) to transfer, within seven days, a corresponding share of the
municipal bonds from the TOB to the Fund. The TOB may also be termi-
nated without the consent of the Fund upon the occurrence of certain
events as defined in the TOB agreements. Such termination events may
include the bankruptcy or default of the municipal security, a substantial
downgrade in credit quality of the municipal security, the inability of the
TOB to obtain quarterly or annual renewal of the liquidity support agree-
ment, a substantial decline in market value of the municipal bond or
the inability to remarket the short-term floating rate certificates to third
party investors.

The cash received by the TOB from the sale of the short-term floating rate
certificates, less transaction expenses, is paid to each Fund, which typically
invests the cash in additional municipal bonds. Each Fund’s transfer of
the municipal bonds to a TOB is accounted for as a secured borrowing,
therefore the municipal bonds deposited into a TOB are presented in the
Funds’ Schedules of Investments and the proceeds from the issuance of
the short-term floating rate certificates are shown as trust certificates in
the Statements of Assets and Liabilities.

Interest income from the underlying security is recorded by the Funds on
an accrual basis. Interest expense incurred on the secured borrowing and

44 ANNUAL REPORT JULY 31, 2009

Notes to Financial Statements (continued)

other expenses related to remarketing, administration and trustee services
to a TOB are reported as expenses of the Funds. The floating rate certifi-
cates have interest rates that generally reset weekly and their holders have
the option to tender certificates to the TOB for redemption at par at each
reset date. At July 31, 2009, the aggregate value of the underlying munici-
pal bonds transferred to TOBs, the related liability for trust certificates
and the range of interest rates on the liability for the trust certificates were
as follows:

    Underlying  Liability   
  Municipal Bonds  For Trust  Range of 
  Transferred to TOBs  Certificates  Interest Rates 
MuniHoldings California         
   Insured   $183,658,839  $105,202,904  0.23% – 0.58% 
MuniHoldings New Jersey         
   Insured   $ 21,748,924  $ 13,262,930  0.41% – 1.56% 
MuniYield Insured         
   Investment   $ 29,550,866  $ 15,375,937  0.25% – 1.92% 
MuniYield Michigan         
   Insured   $ 30,775,237  $ 16,190,000  1.32% – 1.69% 
MuniYield New Jersey         
   Insured   $ 7,777,946  $ 4,684,369  0.41% – 1.56% 
MuniYield Pennsylvania         
   Insured   $ 55,172,158  $ 26,728,368  0.25% – 1.48% 
For the period ended July 31, 2009, the Funds’ average trust certificates 
outstanding and the daily weighted average interest rate were as follows: 
      Average Trust  Daily Weighted 
      Certificates  Average 
      Outstanding  Interest Rate 
MuniHoldings California Insured    $ 105,202,903  0.66%* 
MuniHoldings New Jersey Insured    $ 17,351,442  1.83% 
MuniYield Insured Investment      $ 11,779,382  1.58% 
MuniYield Michigan Insured      $ 21,561,808  1.79% 
MuniYield New Jersey Insured      $ 6,190,739  1.82% 
MuniYield Pennsylvania Insured    $ 20,628,722  1.40% 
 * Annualized.         

Financial transactions executed through TOBs generally will underperform
the market for fixed rate municipal bonds in a rising interest rate environ-
ment, but tend to outperform the market for fixed rate bonds when interest
rates decline or remain relatively stable. Should short-term interest rates
rise, the Funds’ investments in TOBs likely will adversely affect each Fund’s
investment income and distributions to shareholders. Also, fluctuations in
the market value of municipal securities deposited into the TOB may
adversely affect the Funds’ net asset value per share.

Zero-Coupon Bonds: Each Fund may invest in zero-coupon bonds, which
are normally issued at a significant discount from face value and do not
provide periodic interest payments. Zero-coupon bonds may experience
greater volatility in market value than similar maturity debt obligations
which provide regular interest payments.

Segregation and Collateralization: In cases in which the 1940 Act and
the interpretive positions of the Securities and Exchange Commission
(“SEC”) require that each Fund either receive collateral or segregate assets
in connection with certain investments (e.g., financial futures contracts and
swaps) each Fund will, consistent with SEC rules and/or certain interpretive
letters issued by the SEC, segregate collateral or designate on its books and
records cash or other liquid securities having a market value at least equal

to the amount that would otherwise be required to be physically segregated.
Furthermore, based on requirements and agreements with certain exchanges
and third party broker-dealers, each party has requirements to deliver/
deposit securities as collateral for certain investments (e.g., financial futures
contracts and swaps). As part of these agreements, when the value of these
investments achieves a previously agreed upon value (minimum transfer
amount), each party may be required to deliver additional collateral.

Investment Transactions and Investment Income: For financial reporting
purposes, investment transactions are recorded on the dates the trans-
actions are entered into (the trade dates). Realized gains and losses on
security transactions are determined on the identified cost basis. Dividend
income is recorded on the ex-dividend dates. Interest income is recognized
on the accrual method. Each Fund amortizes all premiums and discounts
on debt securities.

Dividends and Distributions: Dividends from net investment income are
declared and paid monthly. Distributions of capital gains are recorded on
the ex-dividend dates. Dividends and distributions to Preferred Shareholders
are accrued and determined as described in Note 7.

Income Taxes: It is each Fund’s policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies
and to distribute substantially all of its taxable income to its shareholders.
Therefore, no federal income tax provision is required.

Each Fund files US federal and various state and local tax returns. No
income tax returns are currently under examination. The statutes of
limitations on the Funds’ US federal tax returns remain open for the
period ended July 31, 2009 and the four years ended June 30, 2009
for MuniHoldings California Insured, the four years ended July 31, 2009 for
MuniHoldings New Jersey Insured and the periods ended July 31, 2009,
2008 and October 31, 2007 and 2006 for MuniYield Insured Investment,
MuniYield Michigan Insured, MuniYield New Jersey Insured and MuniYield
Pennsylvania Insured. The statutes of limitations on the Funds’ state and
local tax returns may remain open for an additional year depending upon
the jurisdiction.

Recent Accounting Pronouncement: In June 2009, Statement of Financial
Accounting Standards No. 166, “Accounting for Transfers of Financial Assets
— an amendment of FASB Statement No. 140” (“FAS 166”), was issued.
FAS 166 is intended to improve the relevance, representational faithfulness
and comparability of the information that a reporting entity provides in its
financial statements about a transfer of financial assets; the effects of a
transfer on its financial position, financial performance, and cash flows;
and a transferor’s continuing involvement, if any, in transferred financial
assets. FAS 166 is effective for financial statements issued for fiscal years
and interim periods beginning after November 15, 2009. Earlier application
is prohibited. The recognition and measurement provisions of FAS 166
must be applied to transfers occurring on or after the effective date.
Additionally, the disclosure provisions of FAS 166 should be applied to
transfers that occurred both before and after the effective date of FAS 166.
The impact of FAS 166 on the Funds’ financial statement disclosures, if
any, is currently being assessed.

ANNUAL REPORT JULY 31, 2009 45

Notes to Financial Statements (continued)

Deferred Compensation and BlackRock Closed-End Share Equivalent
Investment Plan: Under the deferred compensation plan approved by each
Fund’s Board, non-interested Directors (“Independent Directors”) may defer
a portion of their annual complex-wide compensation. Deferred amounts
earn an approximate return as though equivalent dollar amounts had been
invested in common shares of other certain BlackRock Closed-End Funds
selected by the Independent Directors. This has approximately the same
economic effect for the Independent Directors as if the Independent
Directors had invested the deferred amounts directly in other certain
BlackRock Closed-End Funds.

The deferred compensation plan is not funded and obligations thereunder
represent general unsecured claims against the general assets of each
Fund. Each Fund may, however, elect to invest in common shares of other
certain BlackRock Closed-End Funds selected by the Independent Directors
in order to match their deferred compensation obligations. Investments
to cover the Funds’ deferred compensation liability, if any, are included in
other assets on the Statements of Assets and Liabilities. Dividends and
distributions from the BlackRock Closed-End Fund investments under the
plan are included in income — affiliated on the Statements of Operations.

Other: Expenses directly related to a Fund are charged to that Fund. Other
operating expenses shared by several funds are pro rated among those
funds on the basis of relative net assets or other appropriate methods.

2. Derivative Financial Instruments:

The Funds may engage in various portfolio investment strategies both to
increase the return of the Funds and to economically hedge, or protect,
their exposure to interest rate movements and movements in the securities
markets. Losses may arise if the value of the contract decreases due to an
unfavorable change in the price of the underlying security or if the counter-
party does not perform under the contract. The Funds may mitigate these
losses through master netting agreements included within an International
Swap and Derivatives Association, Inc. (“ISDA”) Master Agreement between
the Funds and their counterparties. The ISDA Master Agreement allows
each Fund to offset with its counterparty each Fund’s certain derivative
financial instruments’ payables and/or receivables with collateral held. To
the extent amounts due to the Funds from their counterparties are not fully
collateralized contractually or otherwise, the Funds bear the risk of loss
from counterparty non-performance. See Note 1 “Segregation and
Collateralization” for information with respect to collateral practices.

The Funds are subject to interest rate risk in the normal course of pursuing
their investment objectives by investing in various derivative financial instru-
ments, as described below.

Financial Futures Contracts — The Funds may purchase or sell financial
futures contracts and options on financial futures contracts to gain expo-
sure to, or economically hedge against, changes in the value of interest
rates (interest rate risk). Financial futures contracts are contracts for
delayed delivery of securities at a specific future date and at a specific
price or yield. Pursuant to the contract, the Funds agree to receive from or
pay to the broker an amount of cash equal to the daily fluctuation in value

of the contract. Such receipts or payments are known as margin variation
and are recognized by the Funds as unrealized gains or losses. When the
contract is closed, the Funds record a realized gain or loss equal to the
difference between the value of the contract at the time it was opened and
the value at the time it was closed. The use of financial futures transactions
involves the risk of an imperfect correlation in the movements in the price
of futures contracts, interest rates and the underlying assets. Financial
futures transactions involve minimal counterparty risk since financial
futures contracts are guaranteed against default by the exchange on
which they trade. Counterparty risk is also minimized by the daily
margin variation.

Swaps — The Funds may enter into swap agreements, in which a Fund
and a counterparty agree to make periodic net payments on a specified
notional amount. These periodic payments received or made by the Funds
are recorded in the accompanying Statements of Operations as realized
gains or losses, respectively. Swaps are marked-to market daily and changes
in value are recorded as unrealized appreciation (depreciation). When the
swap is terminated, the Funds will record a realized gain or loss equal to the
difference between the proceeds from (or cost of) the closing transaction
and the Funds’ basis in the contract, if any. Swap transactions involve, to
varying degrees, elements of interest rate, credit and market risk in excess
of the amounts recognized on the Statements of Assets and Liabilities.
Such risks involve the possibility that there will be no liquid market for these
agreements, that the counterparty to the agreements may default on its obli-
gation to perform or disagree as to the meaning of the contractual terms in
the agreements, and that there may be unfavorable changes in interest rates
and/or market values associated with these transactions.

•Forward Interest Rate Swaps: The Funds may enter into forward interest
rate swaps to manage duration, the yield curve or interest rate risk by
economically hedging the value of the fixed rate bonds which may
decrease when interest rates rise (interest rate risk). In a forward inter-
est rate swap, each Fund and the counterparty agree to make periodic
net payments on a specified notional contract amount, commencing on
a specified future effective date, unless terminated earlier. The Funds
generally intend to close each forward interest rate swap before the
effective date specified in the agreement and therefore avoid entering
into the interest rate swap underlying each forward interest rate swap.
The Funds’ maximum risk of loss due to counterparty default is the
amount of unrealized gain on the contract.

Derivatives Not Accounted for as Hedging Instruments under Financial 
Accounting Standards Board Statement of Financial Accounting Standards 
No. 133, “Accounting for Derivative Instruments and Hedging Activities”: 
The Effect of Derivative Instruments on the Statements of Operations 
Period Ended July 31, 2009*
Net Realized Gain (Loss) From
Derivatives Recognized in Income
  MuniHoldings  MuniYield 
  California  Pennsylvania 
  Insured  Insured 
Interest rate contracts:     
   Financial futures contracts  $ 236,178  $ (107,788) 
   Forward interest rate swaps  —  (931,500) 
Total  $ 236,178  $(1,039,288) 

46 ANNUAL REPORT JULY 31, 2009

Notes to Financial Statements (continued) 
Net Change in Unrealized Appreciation/Depreciation on
Derivatives Recognized in Income
  MuniHoldings  MuniYield 
  California  Pennsylvania 
  Insured  Insured 
Interest rate contracts:     
   Financial futures contracts                                                   $ (74,560)  — 
   Forward interest rate swaps  —  $ 227,038 
 * As of July 31, 2009, there were no financial futures contracts or forward interest rate 
     swaps outstanding. During the period ended July 31, 2009, the Funds had limited 
     activity in these transactions.   
The Effect of Derivative Instruments on the Statement of Operations 
Year Ended June 30, 2009
Net Change in Unrealized Appreciation on
Derivatives Recognized in Income
    MuniHoldings 
    California 
    Insured 
Interest rate contracts:     
   Financial futures contracts    $ 74,560 

3. Investment Advisory Agreement and Other Transactions
with Affiliates:

The PNC Financial Services Group, Inc. (“PNC”) and Bank of America
Corporation (“BAC”) are the largest stockholders of BlackRock, Inc.
(“BlackRock”). BAC became a stockholder of BlackRock following its
acquisition of Merrill Lynch & Co., (“Merrill Lynch”) on January 1, 2009.
Prior to that date, both PNC and Merrill Lynch were considered affiliates
of the Funds under the 1940 Act. Subsequent to the acquisition, PNC
remains an affiliate, but due to the restructuring of Merrill Lynch’s owner-
ship interest of BlackRock, BAC is not deemed to be an affiliate under
the 1940 Act.

Each Fund has entered into an Investment Advisory Agreement with
BlackRock Advisors, LLC (the “Manager”), the Funds’ investment advisor,
an indirect, wholly owned subsidiary of BlackRock, to provide investment
advisory and administration services.

The Manager is responsible for the management of each Fund’s portfolio
and provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of each Fund. For such services,
each Fund pays the Manager a monthly fee at an annual rate of 0.50%,
except MuniHoldings California Insured and MuniHoldings New Jersey
Insured, which is 0.55%, of each Fund’s average daily net assets. Average
daily net assets is the average daily value of each Fund’s total assets
minus the sum of its accrued liabilities.

The Manager has agreed to waive its advisory fees by the amount of
investment advisory fees each Fund pays to the Manager indirectly through
its investment in affiliated money market funds, which are included in fees
waived by advisor in the Statements of Operations. For the period ended
July 31, 2009, the amounts waived were as follows:

    Fees Waived 
    by Manager 
MuniHoldings California Insured    $ 10,543 
MuniHoldings New Jersey Insured    $ 21,925 
MuniYield Insured Investment    $ 26,098 
MuniYield Michigan Insured    $ 52,549 
MuniYield New Jersey Insured    $ 11,321 
MuniYield Pennsylvania Insured    $ 36,820 
For the prior year, MuniHoldings California Insured’s waiver was $92,956. 
In addition, the Manager has agreed to waive its advisory fee on the 
proceeds of Preferred Shares and TOBs that exceed 35% of MuniHoldings 
California Insured and MuniHoldings New Jersey Insured’s average daily 
net assets. These amounts are included in fees waived by advisor in the 
Statements of Operations. For the period ended July 31, 2009, the 
amounts waived were as follows:     
    Fees Waived 
    by Manager 
MuniHoldings California Insured    $ 61,328 
MuniHoldings New Jersey Insured    $ 256,573 
For the prior year, MuniHoldings California Insured’s waiver was $882,032. 
The Manager has entered into a separate sub-advisory agreement with 
BlackRock Investment Management, LLC (“BIM”), an affiliate of the 
Manager, under which the Manager pays BIM for services it provides, 
a monthly fee that is a percentage of the investment advisory fee paid 
by each Fund to the Manager.     
For the period ended July 31, 2009, the Funds reimbursed the Manager for 
certain accounting services in the following amounts, which are included in 
accounting services on the Statements of Operations.   
    Accounting 
    Services 
MuniHoldings California Insured    $ 986 
MuniHoldings New Jersey Insured    $ 9,703 
MuniYield Insured Investment    $ 3,431 
MuniYield Michigan Insured    $ 8,108 
MuniYield New Jersey Insured    $ 3,862 
MuniYield Pennsylvania Insured    $ 4,691 
For the prior year, MuniHoldings California Insured’s reimbursement was 
$17,117.     
Certain officers and/or trustees or directors of the Funds are officers 
and/or directors of BlackRock or its affiliates. The Funds reimburse the 
Manager for compensation paid to the Funds’ Chief Compliance Officer. 
4. Investments:     
Purchases and sales of investments, excluding short-term securities, for the 
current period were as follows:     
  Purchases  Sales 
MuniHoldings California Insured  $ 20,265,112  $ 12,247,908 
MuniHoldings New Jersey Insured  $ 41,367,236  $ 54,167,904 
MuniYield Insured Investment  $ 73,903,476  $ 82,355,709 
MuniYield Michigan Insured  $ 36,963,423  $ 66,772,008 
MuniYield New Jersey Insured  $ 15,308,274  $ 21,243,957 
MuniYield Pennsylvania Insured  $ 44,339,004  $ 53,377,384 

ANNUAL REPORT JULY 31, 2009 47

Notes to Financial Statements (continued)           
5. Income Tax Information:             
Reclassifications: Accounting principles generally accepted in the United States of America require that certain components of net assets be adjusted to 
reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The 
following permanent differences as of July 31, 2009 attributable to amortization methods on fixed income securities, the tax classification of distributions 
received from a regulated investment company, the expiration of capital loss carryforwards and the book tax difference on the sale of residual interests in 
tender option bond trusts were reclassified to the following accounts:           
    MuniHoldings  MuniYield  MuniYield  MuniYield  MuniYield 
    New Jersey  Insured  Michigan  New Jersey  Pennsylvania 
    Insured  Investment  Insured  Insured  Insured 
Paid-in capital    $(22,843,109)  $ (89,052)  $ (346,359)  —  $ (212,525) 
Undistributed net investment income    $ (74,728)  $ (863)  $ 13,249  $ (117)  $ (21,204) 
Accumulated net realized loss    $ 22,917,837  $ 89,915  $ 333,110  $ 117  $ 233,729 
The tax character of distributions paid during the fiscal years ended October 31, 2007, and the fiscal periods ended June 30, 2008, July 31, 2008, June 
30, 2009 and July 31, 2009 were as follows:             
   MuniHoldings  MuniHoldings  MuniYield  MuniYield  MuniYield  MuniYield 
  California  New Jersey  Insured  Michigan  New Jersey  Pennsylvania 
  Insured  Insured  Investment  Insured  Insured  Insured 
Tax-exempt income             
7/31/2009  —  $ 17,384,824  $ 6,878,717  $15,194,202  $ 7,211,286  $ 9,144,230 
7/01/2009 – 7/31/2009  $ 2,683,632  —  —  —  —  — 
6/30/2009  32,392,746  —  —  —  —  — 
7/31/2008  —  20,713,946  —  —  —  — 
11/01/2007 – 7/31/2008  —  —  5,962,814  13,697,591  6,108,209  8,276,785 
6/30/2008  40,337,041  —  —  —  —  — 
10/31/2007  —  —  8,353,499  18,813,492  8,168,618  11,548,821 
Ordinary income             
7/31/2009  —  —  $ 116,485  —  —  — 
11/01/2007 – 7/31/2008  —  —  —  —  $ 16,458  — 
6/30/2008  $ 455,908  —  —  —  —  — 
10/31/2007  —  —  —  —  53,500  — 
Long-term capital gains             
7/31/2009  —  —  —  —  $ 245,425  — 
11/01/2007 – 7/31/2008  —  —  —  —  146,310  — 
10/31/2007  —  —  —  —  41,022  — 
Total distributions             
7/31/2009  —  $ 17,384,824  $ 6,995,202  $15,194,202  $ 7,456,711  $ 9,144,230 
7/01/2009 – 7/31/2009  $ 2,683,632  —  —  —  —  — 
6/30/2009  $32,392,746  —  —  —  —  — 
7/31/2008  —  $ 20,713,946  —  —  —  — 
11/01/2007 – 7/31/2008  —  —  $ 5,962,814  $13,697,591  $ 6,270,977  $ 8,276,785 
6/30/2008  $40,792,949  —  —  —  —  — 
10/31/2007  —  —  $ 8,353,499  $18,813,492  $ 8,263,140  $11,548,821 
As of July 31, 2009 the tax components of accumulated earnings (losses) were as follows:         
   MuniHoldings  MuniHoldings  MuniYield  MuniYield  MuniYield  MuniYield 
  California  New Jersey  Insured  Michigan  New Jersey  Pennsylvania 
  Insured  Insured  Investment  Insured  Insured  Insured 
Undistributed tax-exempt income  $ 5,715,700  $ 3,798,258  $ 1,303,879  $ 3,810,686  $ 2,080,054  $ 1,625,921 
Undistributed ordinary income  —  —  —  —  22,478  — 
Undistributed long-term capital gains  —  —  —  —  302,264  — 
Capital loss carryforward  (13,961,368)  (270,405)  (3,735,263)  (8,798,818)  —  (2,948,179) 
Net unrealized gains (losses)*  (37,290,693)  3,658,719  (6,961,292)  (4,957,696)  (2,735,126)  (4,783,476) 
Total  $(45,536,361)  $ 7,186,572  $ (9,392,676)  $ (9,945,828)  $ (330,330)  $ (6,105,734) 
* The differences between book-basis and tax-basis net unrealized gains (losses) were attributable primarily to the tax deferral of losses on wash sales, the tax deferral of losses on 
straddles, the difference between book and tax for premiums and discounts on fixed income securities, the deferral of post-October capital losses for tax purposes, the deferral 
of compensation to directors, and the tax treatment of residual interests in tender option bond trusts.         

48 ANNUAL REPORT JULY 31, 2009

Notes to Financial Statements (continued)           
As of July 31, 2009, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates: 
  MuniHoldings  MuniHoldings  MuniYield  MuniYield  MuniYield 
  California  New Jersey  Insured  Michigan  Pennsylvania 
Expires  Insured  Insured  Investment  Insured  Insured 
2010  —  —  —  $ 1,124,652  — 
2011  $ 3,107,367  $ 235,894  —  —  — 
2012  —  —  $ 2,081,725  3,953,220  — 
2016  2,097,897  —  659,619  1,689,814  — 
2017  8,756,104  34,511  993,919  2,031,132  $ 2,948,179 
Total  $13,961,368  $ 270,405  $ 3,735,263  $ 8,798,818  $ 2,948,179 

6. Concentration, Market and Credit Risk:

Each Fund invests a substantial amount of its assets in issuers located
in a single state or limited number of states. Please see the Schedules
of Investments for concentrations in specific states.

Many municipalities insure repayment of their bonds, which reduces the
risk of loss due to issuer default. The market value of these bonds may
fluctuate for other reasons, including market perception of the value of
such insurance, and there is no guarantee that the insurer will meet
its obligation.

In the normal course of business, the Funds invest in securities and enter
into transactions where risks exist due to fluctuations in the market (market
risk) or failure of the issuer of a security to meet all its obligations (credit
risk). The value of securities held by the Funds may decline in response
to certain events, including those directly involving the issuers whose
securities are owned by the Funds; conditions affecting the general econ-
omy; overall market changes; local, regional or global political, social or
economic instability; and currency and interest rate and price fluctuations.
Similar to credit risk, the Funds may be exposed to counterparty risk, or
the risk that an entity with which the Funds have unsettled or open trans-
actions may default. Financial assets, which potentially expose the Funds
to credit and counterparty risks, consist principally of investments and cash
due from counterparties. The extent of the Funds’ exposure to credit and
counterparty risks with respect to these financial assets is approximated
by their value recorded in the Funds’ Statements of Assets and Liabilities.

7. Capital Share Transactions:

Common Shares

MuniYield Insured Investment and MuniYield Pennsylvania Insured are
authorized to issue an unlimited number of Common Shares of beneficial
interest, par value $0.10 per share together with 1 million Preferred Shares
of beneficial interest, par value of $0.05 per share. The Funds’ Board is
authorized, however, to classify and reclassify any unissued shares of capi-
tal shares without approval of the holders of Common Shares.

MuniHoldings California Insured, MuniHoldings New Jersey Insured,
MuniYield Michigan Insured and MuniYield New Jersey Insured are author-
ized to issue 200 million shares, including Preferred Shares, par value

$0.10 per share or $0.05 per share, all of which were initially classified as
Common Shares. The Funds’ Board is authorized, however, to classify and
reclassify any unissued shares of capital shares without approval of holders
of Common Shares.

Common Shares

For MuniHoldings California Insured, shares issued and outstanding during
the period July 1, 2009 to July 31, 2009 and the years ended June 30,
2009 and June 30, 2008 remained constant.

For MuniHoldings New Jersey Insured, shares issued and outstanding dur-
ing the years ended July 31, 2009 and July 31, 2008 remained constant.

For MuniYield Insured Investment, MuniYield Michigan Insured, MuniYield
New Jersey Insured and MuniYield Pennsylvania Insured, shares issued and
outstanding during the year ended July 31, 2009, the period November 1,
2007 to July 31, 2008 and the year ended October 31, 2007 remained
constant.

Preferred Shares

The Preferred Shares are redeemable at the option of each Fund, in whole
or in part, on any dividend payment date at their liquidation preference
per share plus any accumulated unpaid dividends whether or not declared.
The Preferred Shares are also subject to mandatory redemption at their
liquidation preference per share plus any accumulated or unpaid divi-
dends, whether or not declared, if certain requirements relating to the
composition of the assets and liabilities of a Fund, as set forth in each
Fund’s Articles Supplementary or Certificate of Designation, as applicable
(“Governing Instrument”) are not satisfied.

From time to time in the future, the Fund that has issued Preferred Shares
may affect repurchases of such shares at prices below its liquidation pref-
erences as agreed upon by the Fund and seller. The Fund also may
redeem its respective Preferred Shares from time to time as provided in
the applicable Governing Instrument. The Fund intends to affect such
redemptions and/or repurchases to the extent necessary to maintain
applicable asset coverage requirements or for such other reasons as
the Board may determine.

ANNUAL REPORT JULY 31, 2009 49

Notes to Financial Statements (continued)

The holders of Preferred Shares have voting rights equal to the holders of
Common Shares (one vote per share) and will vote together with holders of
Common Shares (one vote per share) as a single class. However, holders of
Preferred Shares, voting as a separate class, are also entitled to elect two
Directors for each Fund. In addition, the 1940 Act requires that along with
approval by shareholders that might otherwise be required, the approval of
the holders of a majority of any outstanding Preferred Shares, voting sepa-
rately as a class would be required to (a) adopt any plan of reorganization
that would adversely affect the Preferred Shares, (b) change a Fund’s sub-
classification as a closed-end investment company or change its funda-
mental investment restrictions or (c) change its business so as to cease
to be an investment company.

The Funds had the following series of Preferred Shares outstanding,
effective yields and reset frequency as of July 31, 2009:

        Reset 
    Preferred  Effective Frequency 
  Series  Shares  Yield  Days 
MuniHoldings         
   California Insured  A  1,2511  0.52%  7 
  B  2,5271  0.52%  7 
  C  2,0841  0.58%  7 
  D  1,9281  0.58%  7 
  E  2,3701  0.58%  7 
MuniHoldings         
   New Jersey Insured  A  1,1571  0.52%  7 
  B  1,1571  0.58%  7 
  C  2,0421  0.58%  7 
  D  1,5991  0.58%  7 
  E  9531  0.52%  7 
MuniYield Insured Investment  A  1,8841  0.52%  7 
  B  3772  1.63%  7 
MuniYield Michigan Insured     A  1,7531  0.58%  7 
  B  1,7531  0.52%  7 
  C  1,4031  0.58%  7 
  D  8772  1.57%  7 
MuniYield New Jersey Insured  A  1,9651  0.52%  7 
  B  6142  1.63%  7 
MuniYield Pennsylvania Insured  A  1,0411  0.52%  7 
  B  1,2491  0.58%  7 
  C  3642  1.63%  7 
   1 The maximum applicable rate on this series of Preferred Shares is the higher 
       of 110% of the AA commercial paper rate or 110% of 90% of the Kenny S&P 
       30-day High Grade Index rate divided by 1.00 minus the marginal tax rate.   
   2 The maximum applicable rate on this series of Preferred Shares is the higher 
       of 110% plus or times (i) the Telerate/BAA LIBOR or (ii) 90% of the Kenny S&P 
       30-day High Grade Index rate divided by 1.00 minus the marginal tax rate.   

Dividends on 7-day Preferred Shares are cumulative at a rate which is
reset every 7 days based on the results of an auction. If the Preferred
Shares fail to clear the auction on an auction date, the affected Fund is
required to pay the maximum applicable rate on the Preferred Shares to
holders of such shares for successive dividend periods until such time as
the shares is successfully auctioned. The maximum applicable rate on the
Preferred Shares is footnoted as applicable on the above chart. The low,

high and average dividend rates on the Preferred Shares for each Fund 
for the period ended July 31, 2009 were as follows:     
  Series  Low  High  Average 
MuniHoldings         
   California Insured  A  0.43%  0.52%  0.45% 
  B  0.35%  0.52%  0.45% 
  C  0.35%  0.58%  0.46% 
  D  0.38%  0.58%  0.46% 
  E  0.40%  0.58%  0.46% 
MuniHoldings         
   New Jersey Insured  A  0.43%  10.21%  1.81% 
  B  0.35%  12.26%  1.89% 
  C  0.40%  11.35%  1.84% 
  D  0.38%  12.57%  1.85% 
  E  0.35%  11.73%  1.85% 
MuniYield Insured Investment  A  0.43%  10.21%  1.86% 
  B  1.45%  12.52%  2.77% 
MuniYield Michigan Insured  A  0.40%  11.35%  1.84% 
  B  0.35%  11.73%  1.87% 
  C  0.38%  12.57%  1.85% 
  D  1.49%  10.38%  2.79% 
MuniYield New Jersey Insured  A  0.35%  11.73%  1.90% 
  B  1.42%  12.25%  2.81% 
MuniYield Pennsylvania Insured  A  0.43%  10.21%  1.86% 
  B  0.40%  11.35%  1.84% 
  C  1.42%  12.25%  2.80% 

Since February 13, 2008, the Preferred Shares of each Fund failed to
clear any of their auctions. As a result, the Preferred Share dividend rates
were reset to the maximum applicable rate, which ranged from 0.35% to
12.57%. A failed auction is not an event of default for the Funds but it has
a negative impact on the liquidity of the Preferred Shares. A failed auction
occurs when there are more sellers of a fund’s auction rate Preferred
Shares than buyers. It is impossible to predict how long this imbalance
will last. A successful auction for each Fund’s Preferred Shares may not
occur for some time, if ever, and even if liquidity does resume, Preferred
Shareholders may not have the ability to sell the Preferred Shares at their
liquidation preference.

The Funds may not declare dividends or make other distributions on
Common Shares or purchase any such shares if, at the time of the
declaration, distribution or purchase, asset coverage with respect to
the outstanding Preferred Shares is less than 200%.

Prior to December 22, 2008, the Funds paid commissions to certain
broker-dealers at the end of each auction at an annual rate of 0.25%,
calculated on the aggregate principal amount. As of December 2008,
commissions paid to broker-dealers on Preferred Shares that experienced
a failed auction were reduced to 0.15% on the aggregate principal
amount. The Funds will pay commissions of 0.25% on the aggregate
principal amount of all shares that successfully clear their auctions.
Merrill Lynch, Pierce, Fenner & Smith Incorporated, a wholly owned
subsidiary of Merrill Lynch, earned commissions for the period August 1,
2008 to December 31, 2008 (after which time Merrill Lynch was no
longer considered an affiliate) as follows:

50 ANNUAL REPORT JULY 31, 2009

Notes to Financial Statements (continued) 
        Commissions 
MuniHoldings New Jersey Insured        $ 231,521 
MuniYield Insured Investment        $ 95,353 
MuniYield Michigan Insured        $ 174,537 
MuniYield New Jersey Insured        $ 93,868 
MuniYield Pennsylvania Insured        $ 124,097 
During the period ended July 31, 2009, certain Funds announced the fol- 
lowing redemptions of Preferred Shares at a price of $25,000 per share 
plus any accrued and unpaid dividends through the redemption date: 
    Redemption  Shares  Aggregate 
  Series  Date  Redeemed  Principal 
MuniHoldings         
   California Insured  A  7/07/2009  164  $4,100,000 
  B  7/06/2009  332  $8,300,000 
  C  7/06/2009  274  $6,850,000 
  D  7/09/2009  253  $6,325,000 
  E  7/08/2009  312  $7,800,000 
MuniHoldings         
   New Jersey Insured  A  7/07/2009  27  $ 675,000 
  B  7/06/2009  27  $ 675,000 
  C  7/08/2009  47  $1,175,000 
  D  7/09/2009  37  $ 925,000 
  E  7/06/2009  22  $ 550,000 
MuniYield Insured Investment  A  7/14/2009  191  $4,775,000 
  B  7/09/2009  38  $ 950,000 
MuniYield New Jersey Insured  A  7/06/2009  37  $ 925,000 
  B  7/06/2009  12  $ 300,000 
MuniYield Pennsylvania Insured  A  7/14/2009  173  $4,325,000 
  B  7/08/2009  208  $5,200,000 
  C  7/06/2009  61  $1,525,000 
Shares issued and outstanding during the year ended July 31, 2009 for 
MuniYield Michigan Insured remained constant.     
During the year ended July 31, 2008, the Funds announced the following 
redemptions of Preferred Shares at a price of $25,000 per share plus any 
accrued and unpaid dividends through the redemption date:   
    Redemption  Shares  Aggregate 
  Series  Date  Redeemed  Principal 
MuniHoldings         
   New Jersey Insured  A  6/24/2008  176  $ 4,400,000 
  B  6/27/2008  176  $ 4,400,000 
  C  6/25/2008  311  $ 7,775,000 
  D  6/26/2008  244  $ 6,100,000 
  E  6/23/2008  145  $ 3,625,000 
MuniYield Insured Investment  A  6/24/2008  325  $ 8,125,000 
  B  6/26/2008  65  $ 1,625,000 
MuniYield Michigan Insured  A  6/25/2008  247  $ 6,175,000 
  B  6/23/2008  247  $ 6,175,000 
  C  6/26/2008  197  $ 4,925,000 
  D  6/24/2008  123  $ 3,075,000 
MuniYield New Jersey Insured  A  6/23/2008  238  $ 5,950,000 
  B  6/27/2008  74  $ 1,850,000 
MuniYield Pennsylvania Insured  A  6/24/2008  386  $ 9,650,000 
  B  6/25/2008  463  $11,575,000 
  C  6/27/2008  135  $ 3,375,000 

Shares issued and outstanding during the prior year for MuniHoldings 
California Insured remained constant.       
During the year ended June 30, 2008, MuniHoldings California Insured 
announced the following redemptions of Preferred Shares at a price of 
$25,000 per share plus any accrued and unpaid dividends through the 
redemption date:         
    Redemption  Shares  Aggregate 
  Series  Date  Redeemed  Principal 
MuniHoldings         
   California Insured  A  6/24/2008  505  $12,625,000 
  B  6/23/2008  1,021  $25,525,000 
  C  6/27/2008  842  $21,050,000 
  D  6/26/2008  779  $19,475,000 
  E  6/25/2008  958  $23,950,000 
The Funds financed the Preferred Shares redemptions with cash received 
from TOB transactions.         
8. Restatement Information:       
Subsequent to the initial issuance of MuniYield Michigan Insured’s October 
31, 2006 financial statements and MuniHoldings New Jersey Insured’s 
July 31, 2006 financial statements, it was determined that the criteria for 
sale accounting in Financial Accounting Standards No. 140 “Accounting 
for Transfers and Servicing of Financial Assets and Extinguishments of 
Liabilities” had not been met for certain transfers of municipal bonds and 
that these transfers should have been accounted for as secured borrowings 
rather than as sales. As a result, certain financial highlights for each of the 
two years in the period ended October 31, 2005 (for MuniYield Michigan 
Insured) and for the year ended July 31, 2005 (for MuniHoldings New 
Jersey Insured) have been restated to give effect to recording the transfers 
of the municipal bonds as secured borrowings, including recording interest 
on the bonds as interest income and interest on the secured borrowings 
as interest expense.         
Financial Highlights for MuniHoldings New Jersey Insured     
Year Ended July 31, 2005         
      2005 
      Previously   
      Reported  Restated 
Total expenses3      1.20%  1.31% 
Total expenses after fees waived3    1.14%  1.25% 
Portfolio turnover      29.61%  29% 
3 Do not reflect the effect of dividends to Preferred Shareholders.   
Financial Highlights for MuniYield Michigan Insured     
Years Ended October 31, 2005 and 2004       
  2005  2004 
  Previously  Previously  Previously  Previously 
  Reported  Restated  Reported  Restated 
Total expenses4  1.10%  1.42%  1.02%  1.22% 
Total expenses         
   after fees waived4  1.10%  1.42%  1.00%  1.19% 
Portfolio turnover  30.16%  25%  36.63%  32% 
4 Do not reflect the effect of dividends to Preferred Shareholders.   

ANNUAL REPORT JULY 31, 2009 51

Notes to Financial Statements (concluded) 
9. Subsequent Events:     
Each Fund paid a net investment income dividend on September 1, 2009 
to Common Shareholders of record on August 14, 2009 as follows: 
  Common Dividend Per Share 
MuniHoldings California Insured    $0.0630 
MuniHoldings New Jersey Insured    $0.0655 
MuniYield Insured Investment    $0.0660 
MuniYield Michigan Insured    $0.0665 
MuniYield New Jersey Insured    $0.0640 
MuniYield Pennsylvania Insured    $0.0655 
The dividends declared on Preferred Shares for the period August 1, 2009 
to August 31, 2009 were as follows:     
    Dividend 
  Series  Declared 
MuniHoldings     
   California Insured  A  $13,144 
  B  $26,118 
  C  $21,155 
  D  $20,374 
  E  $25,258 
MuniHoldings     
   New Jersey Insured  A  $12,156 
  B  $11,745 
  C  $21,763 
  D  $16,898 
  E  $ 9,850 
MuniYield Insured Investment  A  $19,795 
  B  $11,859 
MuniYield Michigan Insured  A  $18,683 
  B  $18,118 
  C  $14,826 
  D  $27,541 
MuniYield New Jersey Insured  A  $19,086 
  B  $20,309 
MuniYield Pennsylvania Insured  A  $10,938 
  B  $13,311 
  C  $11,315 
Management’s evaluation of the impact of all subsequent events on the 
Fund’s financial statements was completed through September 28, 2009, 
the date the financial statements were issued.     

52 ANNUAL REPORT JULY 31, 2009

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of BlackRock
MuniHoldings California Insured Fund, Inc., BlackRock
MuniHoldings New Jersey Insured Fund, Inc., BlackRock
MuniYield Michigan Insured Fund, Inc. and BlackRock
MuniYield New Jersey Insured Fund, Inc. and the Shareholders
and Board of Trustees of BlackRock MuniYield Insured
Investment Fund and BlackRock MuniYield Pennsylvania
Insured Fund (collectively, the “Funds”):

We have audited the accompanying statement of assets and liabilities,
including the schedule of investments, of BlackRock MuniHoldings
California Insured Fund, Inc., as of July 31, 2009, and the related state-
ments of operations and cash flows for the period July 1, 2009 to July 31,
2009 and for the year ended June 30, 2009, the statements of changes in
net assets for the period July 1, 2009 to July 31, 2009 and for each of the
two years in the period ended June 30, 2009, and the financial highlights
for the period July 1, 2009 to July 31, 2009 and for each of the five years
in the period ended June 30, 2009. We have also audited the accompany-
ing statement of assets and liabilities, including the schedule of invest-
ments, of BlackRock MuniHoldings New Jersey Insured Fund, Inc. as of
July 31, 2009, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years
in the period then ended, and the financial highlights for each of the four
years in the period then ended. We have also audited the accompanying
statements of assets and liabilities, including the schedules of investments,
of BlackRock MuniYield Insured Investment Fund (formerly BlackRock
MuniYield Florida Insured Fund), BlackRock MuniYield New Jersey Insured
Fund, Inc. and BlackRock MuniYield Pennsylvania Insured Fund, as of July
31, 2009, and the related statements of operations for the year then
ended, the statements of changes in net assets for the year ended July 31,
2009, the period November 1, 2007 to July 31, 2008, and the year ended
October 31, 2007, and the financial highlights for the year ended July 31,
2009, the period November 1, 2007 to July 31, 2008, and for each of the
four years in the period ended October 31, 2007. We have also audited the
accompanying statement of assets and liabilities, including the schedule of
investments, of BlackRock MuniYield Michigan Insured Fund, Inc., as of July
31, 2009, and the related statement of operations for the year then ended,
the statements of changes in net assets for the year ended July 31, 2009,
the period November 1, 2007 to July 31, 2008, and the year ended
October 31, 2007, and the financial highlights for the year ended July 31,
2009, the period November 1, 2007 to July 31, 2008 and for each of the
two years in the period ended October 31, 2007. These financial state-
ments and financial highlights are the responsibility of the Funds’ manage-
ment. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits. The financial high-
lights of BlackRock MuniHoldings New Jersey Insured Fund, Inc. for the year
ended July 31, 2005 (before the restatement described in Note 8) were
audited by other auditors whose report, dated September 12, 2005,
expressed a qualified opinion on those financial highlights because of the
errors described in Note 8. The financial highlights of BlackRock MuniYield
Michigan Insured Fund, Inc. for each of the two years in the period ended
October 31, 2005 (before the restatement described in Note 8) were
audited by other auditors whose report, dated December 9, 2005,
expressed a qualified opinion on those financial highlights because of the
errors described in Note 8.

We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements and financial highlights are free of
material misstatement. The Funds are not required to have, nor were we
engaged to perform, audits of their internal controls over financial report-
ing. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Funds’ internal control over financial reporting. Accord-
ingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the finan-
cial statements, assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. Our procedures included confirmation of securities
owned as of July 31, 2009, by correspondence with the custodians and
brokers; where replies were not received from brokers, we performed other
auditing procedures. We believe that our audits provide a reasonable basis
for our opinion.

In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
BlackRock MuniHoldings California Insured Fund, Inc. as of July 31, 2009,
the results of its operations and its cash flows for the period July 1, 2009
to July 31, 2009 and the year ended June 30, 2009, the changes in its net
assets for the period July 1, 2009 to July 31, 2009 and for each of the two
years in the period ended June 30, 2009, and the financial highlights for
the period July 1, 2009 to July 31, 2009 and for each of the five years in
the period ended June 30, 2009, in conformity with accounting principles
generally accepted in the United States of America. Additionally, in our
opinion, the financial statements and financial highlights referred to above
present fairly, in all material respects, the financial position of BlackRock
MuniHoldings New Jersey Insured Fund, Inc. as of July 31, 2009, the
results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the four years in the period then ended, in conformity
with accounting principles generally accepted in the United States of
America. Additionally, in our opinion, the financial statements and financial
highlights referred to above present fairly, in all material respects, the finan-
cial position of BlackRock MuniYield Insured Investment Fund, BlackRock
MuniYield New Jersey Insured Fund, Inc. and BlackRock MuniYield
Pennsylvania Insured Fund as of July 31, 2009, the results of their opera-
tions for the year then ended, the changes in their net assets for the year
ended July 31, 2009, the period November 1, 2007 to July 31, 2008, and
the year ended October 31, 2007, and the financial highlights for the year
ended July 31, 2009, the period November 1, 2007 to July 31, 2008,
and for each of the four years in the period ended October 31, 2007, in
conformity with accounting principles generally accepted in the United
States of America. Additionally, in our opinion, the financial statements
and financial highlights referred to above present fairly, in all material
respects, the financial position of BlackRock MuniYield Michigan Insured
Fund, Inc. as of July 31, 2009, the results of its operations for the year
then ended, the changes in its net assets for the year ended July 31, 2009,
the period November 1, 2007 to July 31, 2008, and the year ended

ANNUAL REPORT JULY 31, 2009 53

Report of Independent Registered Public Accounting Firm (concluded)

October 31, 2007, and the financial highlights for the year ended July 31,
2009, the period November 1, 2007 to July 31, 2008 and for each of the
two years in the period ended October 31, 2007, in conformity with
accounting principles generally accepted in the United States of America.

We also have audited the adjustments, applied by management, to restate
certain financial highlights of BlackRock MuniHoldings New Jersey Insured
Fund, Inc. (the “New Jersey Insured Fund”) for the year ended July 31,
2005, to correct the errors described in Note 8 and the adjustments,
applied by management, to restate certain financial highlights of BlackRock
MuniYield Michigan Insured Fund, Inc. (the “Michigan Insured Fund”) for
each of the two years in the period ended October 31, 2005, to correct the
errors described in Note 8. These adjustments are the responsibility of the
New Jersey Insured Fund’s and the Michigan Insured Fund’s management.
The audit procedures that we performed with respect to the adjustments
included such tests as we considered necessary in the circumstances and
were designed to obtain reasonable assurance about whether the adjust-
ments are appropriate and have been properly applied, in all material
respects, to the restated information in New Jersey Insured Fund’s financial
highlights for the year ended July 31, 2005 and in Michigan Insured Fund’s
financial highlights for each of the two years in the period ended October
31, 2005. We did not perform any audit procedures designed to assess
whether any additional adjustments or disclosures to New Jersey Insured

Fund’s financial highlights for the year ended July 31, 2005 or to Michigan
Insured Fund’s financial highlights for each of the two years in the period
ended October 31, 2005 might be necessary in order for such financial
highlights to be presented in conformity with accounting principles gener-
ally accepted in the United States of America. In our opinion, the adjust-
ments to the financial highlights of New Jersey Insured Fund for the year
ended July 31, 2005 and the adjustments to the financial highlights of
Michigan Insured Fund for each of the two years in the period ended
October 31, 2005, for the restatements described in Note 8 are appropri-
ate and have been properly applied, in all material respects. However, we
were not engaged to audit, review, or apply any procedures to New Jersey
Insured Fund’s or Michigan Insured Fund’s financial highlights other than
with respect to the adjustments described in Note 8 and, accordingly, we
do not express an opinion or any other form of assurance on the New
Jersey Insured Fund’s financial highlights for the year ended July 31, 2005
or the Michigan Insured Fund’s financial highlights for each of the two years
in the period ended October 31, 2005.

Deloitte & Touche LLP
Princeton, New Jersey
September 28, 2009

54 ANNUAL REPORT JULY 31, 2009

Important Tax Information             
All of the net investment income distributions paid by BlackRock MuniHoldings California Insured Fund, Inc., BlackRock MuniHoldings New Jersey Insured 
Fund, Inc., BlackRock MuniYield Michigan Insured Fund, Inc., and BlackRock MuniYield Pennsylvania Insured Fund during the taxable period ended July 31, 
2009 qualify as tax-exempt interest dividends for federal income tax purposes.           
The following table summarizes the taxable per share distributions paid by BlackRock MuniYield Insured Investment Fund and BlackRock MuniYield New 
Jersey Insured Fund, Inc. during the taxable year ended July 31, 2009.           
                            BlackRock MuniYield    BlackRock MuniYield   
             Insured Investment Fund  New Jersey Insured Fund, Inc. 
  Payable Date  Ordinary Income  Payable Date  Long-Term Gains 
Common Shareholders  12/31/08     $ 0.008295  12/31/08     $ 0.017069 
Preferred Shareholders:             
     Series A  12/9/08  $ 10.11  12/1/08     $ 12.76 
  12/16/08  $ 5.12  12/8/08     $ 11.75 
  —    —  12/22/08     $ 9.30 
  —    —  12/29/08     $ 1.17 
     Series B  12/11/08  $ 16.86  12/5/08     $ 20.22 
  12/18/08  $ 0.68  12/12/08     $ 17.55 
  —    —  12/19/08     $ 2.41 
All of the other net investment income distributions paid by the Funds qualify as tax-exempt interest dividends for federal income tax purposes. 

ANNUAL REPORT JULY 31, 2009 55

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements

The Board of Directors (each, a “Board” and, collectively, the “Boards,”
the members of which are referred to as “Board Members”) of each of
BlackRock MuniHoldings California Insured Fund, Inc. (“MUC”), BlackRock
MuniHoldings New Jersey Insured Fund, Inc. (“MUJ”), BlackRock MuniYield
Insured Investment Fund (“MFT”), BlackRock MuniYield Michigan Insured
Fund, Inc. (“MIY”), BlackRock MuniYield New Jersey Insured Fund, Inc.
(“MJI”) and BlackRock MuniYield Pennsylvania Insured Fund (“MPA” and,
together with MUC, MUJ, MFT, MIY and MJI, each a “Fund” and, collectively,
the “Funds”) met on April 14, 2009 and May 28 – 29, 2009 to consider
the approval of its respective Fund’s investment advisory agreement (each,
an “Advisory Agreement”) with BlackRock Advisors, LLC (the “Manager”), the
Fund’s investment advisor. Each Board also considered the approval of
the sub-advisory agreement (each, a “Sub-Advisory Agreement”) between
its respective Fund, the Manager and BlackRock Investment Management,
LLC (the “Sub-Advisor”). The Manager and the Sub-Advisor are referred
to herein as “BlackRock.” The Advisory Agreements and the Sub-Advisory
Agreements are referred to herein as the “Agreements.” Unless otherwise
indicated, references to actions taken by the “Board” or the “Boards” shall
mean each Board acting independently with respect to its respective Fund.

Activities and Composition of the Boards

Each Board consists of twelve individuals, ten of whom are not “interested
persons” as defined in the Investment Company Act of 1940, as amended
(the “1940 Act”) (the “Independent Board Members”). The Board Members
of each Fund are responsible for the oversight of the operations of such
Fund and perform the various duties imposed on the directors of invest-
ment companies by the 1940 Act. The Independent Board Members have
retained independent legal counsel to assist them in connection with their
duties. The Chairman of each Board is an Independent Board Member.
Each Board has established five standing committees: an Audit Committee,
a Governance and Nominating Committee, a Compliance Committee, a
Performance Oversight Committee and an Executive Committee, each of
which is composed of Independent Board Members (except for the
Executive Committee, which has one interested Board Member) and is
chaired by an Independent Board Member. In addition, each Board has
established an Ad Hoc Committee on Auction Market Preferred Shares.

The Agreements

Pursuant to the 1940 Act, each Board is required to consider the continua-
tion of the Agreements on an annual basis. In connection with this process,
each Board assessed, among other things, the nature, scope and quality of
the services provided to its respective Fund by the personnel of BlackRock
and its affiliates, including investment management, administrative services,
shareholder services, oversight of fund accounting and custody, marketing
services and assistance in meeting legal and regulatory requirements.

Throughout the year, the Boards, acting directly and through their commit-
tees, considers at each of their meetings factors that are relevant to their
annual consideration of the renewal of the Agreements, including the

services and support provided by BlackRock to the Funds and their share-
holders. Among the matters the Boards considered were: (a) investment
performance for one-, three- and five-year periods, as applicable, against
peer funds, and applicable benchmarks, if any, as well as senior manage-
ment and portfolio managers’ analysis of the reasons for any underperfor-
mance against its peers; (b) fees, including advisory and other amounts
paid to BlackRock and its affiliates by the Funds for services such as call
center and fund accounting; (c) the Funds’ operating expenses; (d) the
resources devoted to, and compliance reports relating to, the Funds’ invest-
ment objectives, policies and restrictions; (e) the Funds’ compliance with
their Code of Ethics and compliance policies and procedures; (f) the
nature, cost and character of non-investment management services pro-
vided by BlackRock and its affiliates; (g) BlackRock’s and other service
providers’ internal controls; (h) BlackRock’s implementation of the proxy
voting policies approved by the Boards; (i) execution quality of portfolio
transactions; (j) BlackRock’s implementation of the Funds’ valuation and
liquidity procedures; and (k) periodic updates on BlackRock’s business.

Board Considerations in Approving the Agreements

The Approval Process: Prior to the April 14, 2009 meeting, each Board
requested and received materials specifically relating to the Agreements.
Each Board is engaged in an ongoing process with BlackRock to continu-
ously review the nature and scope of the information provided to better
assist their deliberations. The materials provided in connection with
the April meeting included (a) information independently compiled and
prepared by Lipper, Inc. (“Lipper”) on Fund fees and expenses, and the
investment performance of each Fund as compared with a peer group
of funds as determined by Lipper and a customized peer group selected
by BlackRock (collectively, “Peers”); (b) information on the profitability
of the Agreements to BlackRock and a discussion of fall-out benefits to
BlackRock and its affiliates and significant shareholders; (c) a general
analysis provided by BlackRock concerning investment advisory fees
charged to other clients, such as institutional and open-end funds, under
similar investment mandates, as well as the performance of such other
clients; (d) the impact of economies of scale; (e) a summary of aggregate
amounts paid by each Fund to BlackRock; and (f) an internal comparison
of management fees classified by Lipper, if applicable.

At an in-person meeting held on April 14, 2009, each Board reviewed
materials relating to its consideration of the Agreements. As a result of the
discussions that occurred during the April 14, 2009 meeting, the Boards
presented BlackRock with questions and requests for additional informa-
tion and BlackRock responded to these requests with additional written
information in advance of the May 28 – 29, 2009 Board meeting.

At an in-person meeting held on May 28 – 29, 2009, each Fund’s Board,
including the Independent Board Members, unanimously approved the
continuation of the Advisory Agreement between the Manager and such
Fund and the Sub-Advisory Agreement between such Fund, the Manager

56 ANNUAL REPORT JULY 31, 2009

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)

and the Sub-Advisor, each for a one-year term ending June 30, 2010. The
Boards considered all factors they believed relevant with respect to the
Funds, including, among other factors: (a) the nature, extent and quality
of the services provided by BlackRock; (b) the investment performance of
the Funds and BlackRock portfolio management; (c) the advisory fee and
the cost of the services and profits to be realized by BlackRock and certain
affiliates from the relationship with the Funds; (d) economies of scale; and
(e) other factors.

Each Board also considered other matters it deemed important to the
approval process, such as services related to the valuation and pricing of
its respective Fund’s portfolio holdings, direct and indirect benefits to
BlackRock and its affiliates from their relationship with such Fund and
advice from independent legal counsel with respect to the review process
and materials submitted for the Board’s review. The Boards noted the will-
ingness of BlackRock personnel to engage in open, candid discussions
with the Boards. The Boards did not identify any particular information as
controlling, and each Board Member may have attributed different weights
to the various items considered.

A. Nature, Extent and Quality of the Services: Each Board, including its
Independent Board Members, reviewed the nature, extent and quality of
services provided by BlackRock, including the investment advisory services
and the resulting performance of its respective Fund. Throughout the year,
each Board compared its respective Fund’s performance to the perform-
ance of a comparable group of closed-end funds, and the performance of
at least one relevant benchmark, if any. The Boards met with BlackRock’s
senior management personnel responsible for investment operations,
including the senior investment officers. Each Board also reviewed the
materials provided by its respective Fund’s portfolio management team
discussing such Fund’s performance and such Fund’s investment objective,
strategies and outlook.

Each Board considered, among other factors, the number, education
and experience of BlackRock’s investment personnel generally and its
respective Fund’s portfolio management team, investments by portfolio
managers in the funds they manage, BlackRock’s portfolio trading capa-
bilities, BlackRock’s use of technology, BlackRock’s commitment to com-
pliance and BlackRock’s approach to training and retaining portfolio
managers and other research, advisory and management personnel.
Each Board also reviewed a general description of BlackRock’s compen-
sation structure with respect to its respective Fund’s portfolio management
team and BlackRock’s ability to attract and retain high-quality talent.

In addition to advisory services, each Board considered the quality of
the administrative and non-investment advisory services provided to its
respective Fund. BlackRock and its affiliates provide the Funds with certain
administrative and other services (in addition to any such services provided
to the Funds by third parties) and officers and other personnel as are nec-
essary for the operations of the Funds. In addition to investment advisory
services, BlackRock and its affiliates provide the Funds with other services,

including (i) preparing disclosure documents, such as the prospectus and
the statement of additional information in connection with the initial public
offering and periodic shareholder reports; (ii) preparing communications
with analysts to support secondary market trading of the Funds; (iii) assist-
ing with daily accounting and pricing; (iv) preparing periodic filings with
regulators and stock exchanges; (v) overseeing and coordinating the
activities of other service providers; (vi) organizing Board meetings and
preparing the materials for such Board meetings; (vii) providing legal and
compliance support; and (viii) performing other administrative functions
necessary for the operation of the Funds, such as tax reporting, fulfilling
regulatory filing requirements, and call center services. The Boards reviewed
the structure and duties of BlackRock’s fund administration, accounting,
legal and compliance departments and considered BlackRock’s policies and
procedures for assuring compliance with applicable laws and regulations.

B. The Investment Performance of the Funds and BlackRock: Each Board,
including its Independent Board Members, also reviewed and considered
the performance history of its respective Fund. In preparation for the April 14,
2009 meeting, the Boards were provided with reports, independently pre-
pared by Lipper, which included a comprehensive analysis of each Fund’s
performance. The Boards also reviewed a narrative and statistical analysis
of the Lipper data that was prepared by BlackRock, which analyzed various
factors that affect Lipper’s rankings. In connection with its review, each
Board received and reviewed information regarding the investment per-
formance of its respective Fund as compared to a representative group
of similar funds as determined by Lipper and to all funds in such Fund’s
applicable Lipper category and customized peer group selected by
BlackRock. Each Board was provided with a description of the method-
ology used by Lipper to select peer funds. Each Board regularly reviews
the performance of its respective Fund throughout the year.

The Board of MUC noted that in general MUC performed better than its
Peers in that MUC’s performance was at or above the median of its cus-
tomized Lipper peer group composite in two of the one-, three- and five-
year periods reported.

The Boards of MUJ, MIY and MPA noted that in general MUJ, MIY and MPA
performed better than their Peers in that each of MUJ, MIY and MPA’s per-
formance was at or above the median of its customized Lipper peer group
composite in each of the one-, three- and five-year periods reported.

The Board of MFT noted that MFT performed below the median of its
customized Lipper peer group composite in the one-, three- and five-year
periods reported. The Board of MFT and BlackRock reviewed the reasons
for MFT’s underperformance during these periods compared with its Peers.
The Board of MFT was informed that, among other things, overweight posi-
tions in the hospital and housing sectors and poor performance of some
insured and AMT bonds negatively impacted MFT’s performance.

The Board of MJI noted that MJI performed below the median of its cus-
tomized Lipper peer group composite in the three- and five-year periods

ANNUAL REPORT JULY 31, 2009 57

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)

reported and MJI performed above the median of its customized Lipper
peer group composite in the one-year period reported. The Board and
BlackRock reviewed the reasons for MJI’s underperformance during these
periods compared with its Peers. The Board was informed that, among
other things, performance was influenced primarily by the spread widening
of zero coupon issues that took place last year.

For MFT and MJI, the Board of each respective Fund and BlackRock dis-
cussed BlackRock’s commitment to providing the resources necessary to
assist the portfolio managers and to improve MFT and MJI’s performance.

C. Consideration of the Advisory Fees and the Cost of the Services
and Profits to be Realized by BlackRock and its Affiliates from their
Relationship with the Funds: Each Board, including its Independent
Board Members, reviewed its respective Fund’s contractual advisory fee
rates compared with the other funds in its respective Lipper category.
Each Board also compared its respective Fund’s total expenses, as well
as actual management fees, to those of other comparable funds. Each
Board considered the services provided and the fees charged by BlackRock
to other types of clients with similar investment mandates, including sepa-
rately managed institutional accounts.

The Boards received and reviewed statements relating to BlackRock’s
financial condition and profitability with respect to the services it provided
the Funds. The Boards were also provided with a profitability analysis that
detailed the revenues earned and the expenses incurred by BlackRock
for services provided to the Funds. The Boards reviewed BlackRock’s prof-
itability with respect to the Funds and other funds the Boards currently
oversee for the year ended December 31, 2008 compared to available
aggregate profitability data provided for the year ended December 31,
2007. The Boards reviewed BlackRock’s profitability with respect to other
fund complexes managed by the Manager and/or its affiliates. The Boards
reviewed BlackRock’s assumptions and methodology of allocating expenses
in the profitability analysis, noting the inherent limitations in allocating
costs among various advisory products. The Boards recognized that prof-
itability may be affected by numerous factors including, among other
things, fee waivers by the Manager, the types of funds managed, expense
allocations and business mix, and therefore comparability of profitability
is somewhat limited.

The Boards noted that, in general, individual fund or product line prof-
itability of other advisors is not publicly available. Nevertheless, to the
extent such information is available, the Boards considered BlackRock’s
overall operating margin compared to the operating margin for leading
investment management firms whose operations include advising closed-
end funds, among other product types. The comparison indicated that
operating margins for BlackRock with respect to its registered funds are
consistent with margins earned by similarly situated publicly traded com-
petitors. In addition, the Boards considered, among other things, certain
third-party data comparing BlackRock’s operating margin with that of other
publicly-traded asset management firms, which concluded that larger asset
bases do not, in themselves, translate to higher profit margins.

In addition, the Boards considered the cost of the services provided to
the Funds by BlackRock, and BlackRock’s and its affiliates’ profits relating
to the management and distribution of the Funds and the other funds
advised by BlackRock and its affiliates. As part of their analysis, the Boards
reviewed BlackRock’s methodology in allocating its costs to the manage-
ment of the Funds. The Boards also considered whether BlackRock has the
financial resources necessary to attract and retain high quality investment
management personnel to perform its obligations under the Agreements
and to continue to provide the high quality of services that is expected
by the Boards.

Each Board noted that its respective Fund paid contractual management
fees, which do not take into account any expense reimbursement or fee
waivers, lower than or equal to the median contractual management fees
paid by such Fund’s Peers.

D. Economies of Scale: Each Board, including its Independent Board
Members, considered the extent to which economies of scale might be
realized as the assets of its respective Fund increase and whether there
should be changes in the advisory fee rate or structure in order to enable
such Fund to participate in these economies of scale, for example through
the use of breakpoints in the advisory fee based upon the assets of such
Fund. The Boards considered that the funds in the BlackRock fund complex
share some common resources and, as a result, an increase in the overall
size of the complex could permit each fund to incur lower expenses than
it would otherwise as a stand-alone entity. The Boards also considered
BlackRock’s overall operations and its efforts to expand the scale of, and
improve the quality of, its operations.

The Boards noted that most closed-end fund complexes do not have fund
level breakpoints because closed-end funds generally do not experience
substantial growth after the initial public offering and each fund is man-
aged independently consistent with its own investment objectives. The
Boards noted that only one closed-end fund in the Fund Complex has
breakpoints in its fee structure. Information provided by Lipper also
revealed that only one closed-end fund complex used a complex-level
breakpoint structure.

E. Other Factors: The Boards also took into account other ancillary or
“fall-out” benefits that BlackRock or its affiliates and significant share-
holders may derive from their relationship with the Funds, both tangible
and intangible, such as BlackRock’s ability to leverage its investment pro-
fessionals who manage other portfolios, an increase in BlackRock’s profile
in the investment advisory community, and the engagement of BlackRock’s
affiliates as service providers to the Funds, including for administrative
and distribution services. The Boards also noted that BlackRock may use
third-party research obtained by soft dollars generated by certain mutual
fund transactions to assist itself in managing all or a number of its other
client accounts.

In connection with their consideration of the Agreements, the Boards also
received information regarding BlackRock’s brokerage and soft dollar prac-

58 ANNUAL REPORT JULY 31, 2009

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (concluded)

tices. The Boards received reports from BlackRock, which included informa-
tion on brokerage commissions and trade execution practices throughout
the year.

Conclusion

Each Board, including its Independent Board Members, unanimously
approved the continuation of the Advisory Agreement between its respec-
tive Fund and the Manager for a one-year term ending June 30, 2010
and the Sub-Advisory Agreement between such Fund, the Manager and
Sub-Advisor for a one-year term ending June 30, 2010. Based upon its
evaluation of all these factors in their totality, each Board, including its
Independent Board Members, was satisfied that the terms of the Agree-
ments were fair and reasonable and in the best interest of its respective

Fund and its shareholders. In arriving at a decision to approve the
Agreements, each Board did not identify any single factor or group of
factors as all-important or controlling, but considered all factors together,
and different Board Members may have attributed different weights to the
various factors considered. The Independent Board Members were also
assisted by the advice of independent legal counsel in making this deter-
mination. The contractual fee arrangements for each Fund reflects the
results of several years of review by such Fund’s Board Members and pred-
ecessor Board Members, and discussions between such Board Members
(and predecessor Board Members) and BlackRock. Certain aspects of the
arrangements may be the subject of more attention in some years than in
others, and the Board Members’ conclusions may be based in part on their
consideration of these arrangements in prior years.

ANNUAL REPORT JULY 31, 2009 59

Automatic Dividend Reinvestment Plan

How the Plan Works — The Funds offer a Dividend Reinvestment Plan
(“The Plan”) under which income and capital gains dividends paid by
a Fund are automatically reinvested in additional Common Shares of
the Fund. The Plan is administered on behalf of the shareholders by The
BNY Mellon Shareowner Services for BlackRock MuniHoldings California
Insured Fund, Inc., BlackRock MuniHoldings New Jersey Insured Fund,
Inc., BlackRock MuniYield Insured Investment Fund, BlackRock MuniYield
Michigan Insured Fund, Inc. and BlackRock MuniYield New Jersey Insured
Fund, Inc., and Computershare Trust Company, N.A. for BlackRock MuniYield
Pennsylvania Insured Fund (individually, the “Plan Agent” or together, the
“Plan Agents”). Under the Plan, whenever a Fund declares a dividend,
participants in the Plan will receive the equivalent in shares of Common
Shares of the Fund. The Plan Agents will acquire the shares for the partici-
pant’s account either (i) through receipt of additional unissued but author-
ized shares of the Funds (“newly issued shares”) or (ii) by purchase of
outstanding Common Shares on the open market on the New York Stock
Exchange or NYSE Amex, as applicable or elsewhere. If, on the dividend
payment date, the Fund’s net asset value per share is equal to or less than
the market price per share plus estimated brokerage commissions (a con-
dition often referred to as a “market premium”), the Plan Agents will invest
the dividend amount in newly issued shares. If the Fund’s net asset value
per share is greater than the market price per share (a condition often
referred to as a “market discount”), the Plan Agents will invest the dividend
amount by purchasing on the open market additional shares. If the Plan
Agents are unable to invest the full dividend amount in open market pur-
chases, or if the market discount shifts to a market premium during the
purchase period, the Plan Agents will invest any uninvested portion in newly
issued shares. The shares acquired are credited to each shareholder’s
account. The amount credited is determined by dividing the dollar amount
of the dividend by either (i) when the shares are newly issued, the net
asset value per share on the date the shares are issued or (ii) when shares
are purchased in the open market, the average purchase price per share.

Participation in the Plan — Participation in the Plan is automatic, that is, a
shareholder is automatically enrolled in the Plan when he or she purchases
Common Shares of the Funds unless the shareholder specifically elects not
to participate in the Plan. Shareholders who elect not to participate will
receive all dividend distributions in cash. Shareholders who do not wish
to participate in the Plan must advise their Plan Agent in writing (at the
address set forth below) that they elect not to participate in the Plan.
Participation in the Plan is completely voluntary and may be terminated
or resumed at any time without penalty by writing to the Plan Agent.

Benefits of the Plan — The Plan provides an easy, convenient way for
shareholders to make additional, regular investments in the Funds. The
Plan promotes a long-term strategy of investing at a lower cost. All shares
acquired pursuant to the Plan receive voting rights. In addition, if the mar-
ket price plus commissions of a Funds’ shares is above the net asset
value, participants in the Plan will receive shares of the Funds for less
than they could otherwise purchase them and with a cash value greater
than the value of any cash distribution they would have received. However,
there may not be enough shares available in the market to make distribu-
tions in shares at prices below the net asset value. Also, since the Funds
do not redeem shares, the price on resale may be more or less than the
net asset value.

Plan Fees — There are no enrollment fees or brokerage fees for participat-
ing in the Plan. The Plan Agents’ service fees for handling the reinvestment
of distributions are paid for by the Funds. However, brokerage commissions
may be incurred when the Funds purchase shares on the open market and
shareholders will pay a pro rata share of any such commissions.

Tax Implications — The automatic reinvestment of dividends and distribu-
tions will not relieve participants of any federal, state or local income tax
that may be payable (or required to be withheld) on such dividends.
Therefore, income and capital gains may still be realized even though
shareholders do not receive cash. If, when the Funds’ shares are trading at
a market premium, the Funds issue shares pursuant to the Plan that have
a greater fair market value than the amount of cash reinvested, it is possi-
ble that all or a portion of the discount from the market value (which may
not exceed 5% of the fair market value of the Funds’ shares) could be
viewed as a taxable distribution. If the discount is viewed as a taxable
distribution, it is also possible that the taxable character of this discount
would be allocable to all the shareholders, including shareholders who do
not participate in the Plan. Thus, shareholders who do not participate in the
Plan might be required to report as ordinary income a portion of their dis-
tributions equal to their allocable share of the discount.

Contact Information — All correspondence concerning the Plan, includ-
ing any questions about the Plan, should be directed to the Plan Agent
at the following addresses: Shareholders of BlackRock MuniHoldings
California Insured Fund, Inc., BlackRock MuniHoldings New Jersey Insured
Fund, Inc., BlackRock MuniYield Insured Investment Fund, BlackRock
MuniYield Michigan Insured Fund, Inc. and BlackRock MuniYield New
Jersey Insured Fund, Inc. should contact The BNY Mellon Shareowner
Services, P.O. Box 358035, Pittsburgh, PA 15252-8035, Telephone:
(866) 216-0242 and shareholders of BlackRock MunYield Pennsylvania
Insured Fund should contact Computershare Trust Company, N.A., P.O.
Box 43078, Providence, RI 02940-3078, Telephone: (800) 699-1BFM
or overnight correspondence should be directed to the Plan Agent at
250 Royall Street, Canton, MA 02021.

60 ANNUAL REPORT JULY 31, 2009

Officers and Directors         
        Number of   
    Length of    BlackRock-   
  Position(s)  Time    Advised Funds   
Name, Address  Held with  Served as    and Portfolios  Public 
and Year of Birth  Funds  a Director2  Principal Occupation(s) During Past Five Years  Overseen  Directorships 
     Non-Interested Directors1         
Richard E. Cavanagh  Chairman  Since  Trustee, Aircraft Finance Trust since 1999; Director, The Guardian Life Insurance  104 Funds  Arch Chemical 
40 East 52nd Street  of the Board  2007  Company of America since 1998; Trustee, Educational Testing Service from 1997  101 Portfolios  (chemical and allied 
New York, NY 10022  and Director    to 2009 and Chairman from 2005 to 2009; Senior Advisor, The Fremont Group    products) 
1946      since 2008 and Director thereof since 1996; Adjunct Lecturer, Harvard University     
      since 2007; President and Chief Executive Officer of The Conference Board, Inc.     
      (global business research organization) from 1995 to 2007.     
Karen P. Robards  Vice Chair of  Since  Partner of Robards & Company, LLC (financial advisory firm) since 1987;  104 Funds  AtriCure, Inc. 
40 East 52nd Street  the Board,  2007  Co-founder and Director of the Cooke Center for Learning and Development,  101 Portfolios  (medical devices); 
New York, NY 10022  Chair of    (a not-for-profit organization) since 1987; Director of Enable Medical Corp.    Care Investment 
1950  the Audit    from 1996 to 2005.    Trust, Inc. (health 
  Committee        care real estate 
  and Director        investment trust) 
G. Nicholas Beckwith, III  Director  Since  Chairman and Chief Executive Officer, Arch Street Management, LLC (Beckwith  104 Funds  None 
40 East 52nd Street    2007  Family Foundation) and various Beckwith property companies since 2005;  101 Portfolios   
New York, NY 10022      Chairman of the Board of Directors, University of Pittsburgh Medical Center     
1945      since 2002; Board of Directors, Shady Side Hospital Foundation since 1977;     
      Board of Directors, Beckwith Institute for Innovation In Patient Care since 1991;     
      Member, Advisory Council on Biology and Medicine, Brown University since     
      2002; Trustee, Claude Worthington Benedum Foundation (charitable foundation)     
      since 1989; Board of Trustees, Chatham University since 1981; Board of Trustees,     
      University of Pittsburgh since 2002; Emeritus Trustee, Shady Side Academy since     
      1977; Chairman and Manager, Penn West Industrial Trucks LLC (sales, rental and     
      servicing of material handling equipment) from 2005 to 2007; Chairman, President     
      and Chief Executive Officer, Beckwith Machinery Company (sales, rental and servicing   
      of construction and equipment) from 1985 to 2005; Member of the Board of Directors,   
      National Retail Properties (REIT) from 2006 to 2007.     
Kent Dixon  Director and  Since  Consultant/Investor since 1988.  104 Funds  None 
40 East 52nd Street  Member of  2007    101 Portfolios   
New York, NY 10022  the Audit         
1937  Committee         
Frank J. Fabozzi  Director and  Since  Consultant/Editor of The Journal of Portfolio Management since 2006; Professor  104 Funds  None 
40 East 52nd Street  Member of  2007  in the Practice of Finance and Becton Fellow, Yale University, School of Manage-  101 Portfolios   
New York, NY 10022  the Audit    ment, since 2006; Adjunct Professor of Finance and Becton Fellow, Yale University     
1948  Committee    from 1994 to 2006.     
Kathleen F. Feldstein  Director  Since  President of Economics Studies, Inc. (private economic consulting firm) since  104 Funds  The McClatchy 
40 East 52nd Street    2007  1987; Chair, Board of Trustees, McLean Hospital from 2000 to 2008 and Trustee  101 Portfolios  Company 
New York, NY 10022      Emeritus thereof since 2008; Member of the Board of Partners Community    (publishing) 
1941      Healthcare, Inc. since 2005; Member of the Corporation of Partners HealthCare     
      since 1995; Trustee, Museum of Fine Arts, Boston since 1992; Member of the     
      Visiting Committee to the Harvard University Art Museum since 2003.     
James T. Flynn  Director and  Since  Chief Financial Officer of JP Morgan & Co., Inc. from 1990 to 1995.  104 Funds  None 
40 East 52nd Street  Member of  2007    101 Portfolios   
New York, NY 10022  the Audit         
1939  Committee         
Jerrold B. Harris  Director  Since  Trustee, Ursinus College since 2000; Director, Troemner LLC (scientific equipment)  104 Funds  BlackRock Kelso 
40 East 52nd Street    2007  since 2000.  101 Portfolios  Capital Corp. 
New York, NY 10022           
1942           

ANNUAL REPORT JULY 31, 2009 61

Officers and Directors (continued)     
        Number of   
    Length of    BlackRock-   
  Position(s)  Time    Advised Funds   
Name, Address  Held with  Served as    and Portfolios  Public 
and Year of Birth  Funds  a Director2   Principal Occupation(s) During Past Five Years  Overseen  Directorships 
     Non-Interested Directors1 (concluded)         
R. Glenn Hubbard  Director  Since   Dean, Columbia Business School since 2004; Columbia faculty member since  104 Funds  ADP (data and 
40 East 52nd Street    2007   1988; Co-Director, Columbia Business School’s Entrepreneurship Program  101 Portfolios  information services), 
New York, NY 10022       from 1997 to 2004; Visiting Professor, John F. Kennedy School of Government    KKR Financial 
1958       at Harvard University and the Harvard Business School since 1985 and at the    Corporation (finance), 
       University of Chicago since 1994; Chairman, U.S. Council of Economic Advisers    Metropolitan Life 
       under the President of the United States from 2001 to 2003.    Insurance Company 
          (insurance) 
W. Carl Kester  Director  Since   George Fisher Baker Jr. Professor of Business Administration, Harvard Business  104 Funds  None 
40 East 52nd Street  and Member  2007   School; Deputy Dean for Academic Affairs, since 2006; Unit Head, Finance,  101 Portfolios   
New York, NY 10022  of the Audit     Harvard Business School, from 2005 to 2006; Senior Associate Dean and     
1951  Committee     Chairman of the MBA Program of Harvard Business School, from 1999 to 2005;     
       Member of the faculty of Harvard Business School since 1981; Independent     
       Consultant since 1978.     
  1 Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.     
  2 Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. (“BlackRock”) in September 2006, the various legacy 
   MLIM and legacy BlackRock Fund boards were realigned and consolidated into three new Fund boards in 2007. As a result, although the chart shows 
   directors as joining the Funds’ board in 2007, each director first became a member of the board of directors of other legacy MLIM or legacy BlackRock 
   Funds as follows: G. Nicholas Beckwith, III, 1999; Richard E. Cavanagh, 1994; Kent Dixon, 1988; Frank J. Fabozzi, 1988; Kathleen F. Feldstein, 2005; 
James T. Flynn, 1996; Jerrold B. Harris, 1999; R. Glenn Hubbard, 2004; W. Carl Kester, 1995 and Karen P. Robards, 1998.
     Interested Directors3           
Richard S. Davis  President4  Since  Managing Director, BlackRock, Inc. since 2005; Chief Executive Officer, State Street  173 Funds  None 
40 East 52nd Street  and  2007  Research & Management Company from 2000 to 2005; Chairman of the Board  283 Portfolios   
New York, NY 10022  Director    of Trustees, State Street Research Mutual Funds from 2000 to 2005; Chairman,     
1945      SSR Realty from 2000 to 2004.     
Henry Gabbay  Director  Since  Consultant, BlackRock, Inc. from 2007 to 2008; Managing Director, BlackRock,  173 Funds  None 
40 East 52nd Street    2007  Inc. from 1989 to 2007; Chief Administrative Officer, BlackRock Advisors, LLC  283 Portfolios   
New York, NY 10022      from 1998 to 2007; President of BlackRock Funds and BlackRock Bond     
1947      Allocation Target Shares from 2005 to 2007; Treasurer of certain closed-end     
      funds in the BlackRock fund complex from 1989 to 2006.     
  3 Mr. Davis is an “interested person,” as defined in the Investment Company Act of 1940, of the Funds based on his position with BlackRock, Inc. and its 
   affiliates. Mr. Gabbay is an “interested person” of the Funds based on his former positions with BlackRock, Inc. and its affiliates as well as his ownership 
   of BlackRock, Inc. and PNC Securities. Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72. 
  4 Fund President for BlackRock MuniYield Insured Investment Fund and BlackRock MuniYield Pennsylvania Insured Fund.   

62 ANNUAL REPORT JULY 31, 2009

Officers and Directors (continued) 
  Position(s)     
Name, Address  Held with  Length of   
and Year of Birth  Funds  Time Served  Principal Occupation(s) During Past 5 Years 
     Fund Officers1       
Donald C. Burke  President2  Since  Managing Director of BlackRock, Inc. since 2006; Managing Director of Merrill Lynch Investment Managers, LP. (“MLIM”) 
40 East 52nd Street  and Chief  2007  and Fund Asset Management LP. (“FAM”) in 2006, First Vice President thereof from 1997 to 2005. Treasurer thereof from 
New York, NY 10022  Executive    1999 to 2006 and Vice President thereof from 1990 to 1997. 
1960  Officer     
Anne F. Ackerley  Vice  Since  Managing Director of BlackRock, Inc. since 2000; Vice President of the BlackRock-advised funds from 2007 to 2009; 
40 East 52nd Street  President  2007  Chief Operating Officer of BlackRock’s Account Management Group (AMG) since 2009; Chief Operating Officer of 
New York, NY 10022      BlackRock’s U.S. Retail Group from 2006 to 2009; Head of BlackRock’s Mutual Fund Group from 2000 to 2006. 
1962       
Neal J. Andrews  Chief  Since  Managing Director of BlackRock, Inc. since 2006; Senior Vice President and Line of Business Head of Fund 
40 East 52nd Street  Financial  2007  Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. from 1992 to 2006. 
New York, NY 10022  Officer     
1966       
Jay M. Fife  Treasurer  Since  Managing Director of BlackRock, Inc. since 2007 and Director in 2006; Assistant Treasurer of the Merrill Lynch 
40 East 52nd Street    2007  Investment Managers, L.P. (“MLIM”) and Fund Asset Management, L.P. advised funds from 2005 to 2006; Director of 
New York, NY 10022      MLIM Fund Services Group from 2001 to 2006. 
1970       
Brian P. Kindelan  Chief  Since  Chief Compliance Officer of the BlackRock-advised funds since 2007; Managing Director and Senior Counsel 
40 East 52nd Street  Compliance  2007  of BlackRock, Inc. since 2005; Director and Senior Counsel of BlackRock Advisors, Inc. from 2001 to 2004. 
New York, NY 10022  Officer     
1959       
Howard B. Surloff  Secretary  Since  Managing Director of BlackRock, Inc. and General Counsel of U.S. Funds at BlackRock, Inc. since 2006; General 
40 East 52nd Street    2007  Counsel (U.S.) of Goldman Sachs Asset Management, L.P. from 1993 to 2006. 
New York, NY 10022       
1965       
  1 Officers of the Funds serve at the pleasure of the Board of Directors. 
  2 Fund President for BlackRock MuniHoldings California Insured Fund, Inc., BlackRock MuniHoldings New Jersey Insured Fund, Inc, BlackRock 
   MuniYield Michigan Insured Fund, Inc. and BlackRock MuniYield New Jersey Insured Fund, Inc. 
  Further information about the Funds’ Officers and Directors is available in the Funds’ Statement of Additional Information, which can be obtained 
  without charge by calling (800) 441-7762 

ANNUAL REPORT JULY 31, 2009 63

Officers and Directors (concluded)         
Custodians  Transfer Agent  Accounting Agent  Investment Advisor  Legal Counsel  Independent  Address of the Funds 
State Street Bank  Common Shares  State Street Bank  BlackRock Advisors, LLC  Skadden, Arps, Slate,  Registered Public  100 Bellevue Parkway 
and Trust Company1  Computershare Trust  and Trust Company  WIlmington, DE 19809  Meagher & Flom LLP  Accounting Firm  Wilmington, DE 19809 
Boston, MA 02101  Company, N.A.1  Princeton, NJ 08540    New York, NY 10036  Deloitte & Touche LLP   
  Providence, RI 02940        Princeton, NJ 08540   
The Bank of  BNY Mellon  Auction Agent  Sub-Advisor       
New York Mellon2  Shareowner Services2  Preferred Shares  BlackRock Investment       
New York, NY 10286  Jersey City, NJ 07310  BNY Mellon  Management, LLC       
    Shareowner Services  Plainsboro, NJ 08536       
    Jersey City, NJ 07310         

Effective July 31, 2009, Donald C. Burke, President for BlackRock Muniholdings California Insured Fund, Inc., BlackRock
MuniHoldings New Jersey Insured Fund, Inc., BlackRock MuniYield Michigan Insured Fund, Inc. and BlackRock MuniYield
New Jersey Insured Fund, Inc. and Chief Executive Officer of the Funds retired. The Funds’ Boards of Directors wish
Mr. Burke well in his retirement.

Effective August 1, 2009, Anne F. Ackerley became President for BlackRock Muniholdings California Insured Fund, Inc.,
BlackRock MuniHoldings New Jersey Insured Fund, Inc., BlackRock MuniYield Michigan Insured Fund, Inc. and BlackRock
MuniYield New Jersey Insured Fund, Inc. and Chief Executive Officer of the Funds, and Brendan Kyne became Vice President
of the Funds.

1 For BlackRock MuniYield Pennsylvania Insured Fund.
2 For BlackRock MuniHoldings California Insured Fund, Inc., BlackRock MuniHoldings New Jersey Insured Fund, Inc., BlackRock MuniYield Insured Investment Fund, BlackRock MuniYield
Michigan Insured Fund, Inc., and BlackRock MuniYield New Jersey Insured Fund, Inc.

64 ANNUAL REPORT JULY 31, 2009

Additional Information

General Information

The Funds do not make available copies of their Statements of Additional
Information because the Funds’ shares are not continuously offered, which
means that the Statement of Additional Information of each Fund has not
been updated after completion of the respective Fund’s offerings and the
information contained in each Fund’s Statement of Additional Information
may have become outdated.

Other than the revisions discussed in the Board Approvals on page 66,
during the period, there were no material changes in the Funds’ investment
objectives or policies or to the Funds’ charters or by-laws that were not
approved by their shareholders or in the principal risk factors associated
with investment in the Funds. There have been no changes in the persons
who are primarily responsible for the day-to-day management for the
Funds’ portfolios.

Quarterly performance, semi-annual and annual reports and other informa-
tion regarding the Funds may be found on BlackRock’s website, which can
be accessed at http://www.blackrock.com. This reference to BlackRock’s
website is intended to allow investors public access to information regard-
ing the Funds and does not, and is not intended to, incorporate BlackRock’s
website into this report.

Electronic Delivery

Electronic copies of most financial reports are available on the Funds’ web-
sites or shareholders can sign up for e-mail notifications of quarterly state-
ments, annual and semi-annual reports by enrolling in the Funds’ electronic
delivery program.

Shareholders Who Hold Accounts with Investment Advisors, Banks
or Brokerages:

Please contact your financial advisor to enroll. Please note that not all
investment advisors, banks or brokerages may offer this service.

Householding

The Funds will mail only one copy of shareholder documents, including
annual and semi-annual reports and proxy statements, to shareholders
with multiple accounts at the same address. This practice is commonly
called “householding” and it is intended to reduce expenses and eliminate
duplicate mailings of shareholder documents. Mailings of your shareholder
documents may be householded indefinitely unless you instruct us other-
wise. If you do not want the mailing of these documents to be combined
with those for other members of your household, please contact the Funds
at (800) 441-7762.

Availability of Quarterly Schedule of Investments

Each Fund files its complete schedule of portfolio holdings witht the SEC
for the first and third quarters of each fiscal year on Form N-Q. The Funds’
Forms N-Q are available on the SEC’s website at http://www.sec.gov and
may also be reviewed and copied at the SEC’s Public Reference Room in
Washington, DC. Information on the operation of the Public Reference
Room may be obtained by calling (202) 551-8090. Each Fund’s Forms
N-Q may also be obtained upon request and without charge by calling
(800) 441-7762

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Funds use to
determine how to vote proxies relating to portfolio securities is available
(1) without charge, upon request, by calling toll-free (800) 441-7762;
(2) at www.blackrock.com; and (3) on the Securities and Exchange
Commission’s website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Funds voted proxies relating to securities
held in the Funds’ portfolios during the most recent 12-month period
ended June 30 is available upon request and without charge (1) at
www.blackrock.com or by calling (800) 441-7762 and (2) on the
Securities and Exchange Commission’s website at http://www.sec.gov.

Dividend Policy

The Funds’ dividend policy is to distribute all or a portion of their net
investment income to its shareholders on a monthly basis. In order to pro-
vide shareholders with a more stable level of dividend distributions, the
Funds may at times pay out less than the entire amount of net investment
income earned in any particular month and may at times in any particular
month pay out such accumulated but undistributed income in addition to

net investment income earned in that month. As a result, the dividends
paid by the Funds for any particular month may be more or less than the
amount of net investment income earned by the Funds during such month.
The Funds’ current accumulated but undistributed net investment income, if
any, is disclosed in the Statements of Assets and Liabilities, which com-
prises part of the financial information included in this report.

Fund Certification

The Funds are listed for trading on the New York Stock Exchange (“NYSE”)
and have filed with the NYSE their annual chief executive officer certifica-
tion regarding compliance with the NYSE’s listing standards. The Funds filed

with the Securities and Exchange Commission (“SEC”) the certification of
its chief executive officer and chief financial officer required by section 302
of the Sarbanes-Oxley Act.

ANNUAL REPORT JULY 31, 2009 65

Additional Information (continued)

Board Approvals

On September 12, 2008, the Board of Directors of the Funds voted unani-
mously to change certain investment guidelines of the Funds. Under normal
market conditions, the Funds are required to invest at least 80% of their
total assets in municipal bonds either (i) insured under an insurance policy
purchased by the Funds or (ii) insured under an insurance policy obtained
by the issuer of the municipal bond or any other party. Historically, the
Funds have had an additional non-fundamental invest-ment policy limiting
its purchase of insured municipal bonds to those bonds insured by insur-
ance providers with claims-paying abilities rated AAA or Aaa at the time
of investment.

Following the onset of the credit and liquidity crises currently troubling
the financial markets, the applicable rating agencies lowered the claims-
paying ability rating of most of the municipal bond insurance providers
below the highest rating category. As a result, the Manager recommended,
and the Board approved, an amended policy with respect to the pur-
chase of insured municipal bonds that such bonds must be insured by
insurance providers or other entities with claims-paying abilities rated
at least investment grade. This investment grade restriction is measured
at the time of investment, and the Funds will not be required to dispose
of municipal bonds they hold in the event of subsequent downgrades.
The approved changes do not alter the Funds’ investment objectives.

In addition, on September 12, 2008, the Board of Directors of BlackRock
MuniYield Florida Insured Fund voted unanimously to change a non-
fundamental investment policy of the Fund, and to rename the Fund
“BlackRock MuniYield Insured Investment Fund.” The Fund’s previous non-
fundamental investment policy required the Fund, under normal market
conditions, to invest at least 80% of its assets in Florida municipal bonds
insured by insurers with claims-paying abilities rated AAA at time of invest-
ment. Due to the repeal of the Florida Intangible Personal Property Tax as of
January 2007, the Board has approved an amended policy allowing the

Fund flexibility to invest in municipal obligations regardless of geographic
location, as well as revising the policy with respect to the claims-paying
ability rating adopted by the Fund. The Fund's new investment policy is,
under normal market conditions, to invest at least 80% of its assets in
municipal bonds insured by insurers or other entities with claims-paying
abilities rated at least investment grade at time of investment. The
approved changes will not alter the Fund’s investment objective.

Under current market conditions, the Manager anticipates that it will gradu-
ally reposition the BlackRock MuniYield Insured Investment Fund’s portfolio
over time and that during such period, the Fund may continue to hold a
substantial portion of its assets in Florida municipal bonds. At this time, it
is uncertain how long the repositioning may take, and the Fund will con-
tinue to be subject to risks associated with investing a significant portion of
its assets in Florida municipal bonds until the repositioning is complete.

The Manager and the Board believe the amended policies will allow the
Manager to better manage the Funds’ portfolios in the best interests of the
Funds’ shareholders and to better meet the Funds' investment objectives.

Effective September 13, 2008, following approval by the Funds’ Board
and the applicable ratings agencies, the Board amended the terms of the
Funds’ Statement of Preferences/Articles of Incorporation in order to allow
the Funds to enter into TOB transactions, the proceeds of which were used
to redeem a portion of the Funds’ Preferred Shares. Accordingly, the defini-
tion of Inverse Floaters was amended to incorporate the Funds’ permissible
ratio of floating rate instruments into inverse floating rate instruments.
Additionally, conforming changes and certain formula modifications con-
cerning inverse floaters were made to the definitions of Moody’s Discount
Factor and S&P Discount Factor, as applicable, to integrate the Funds’
investments in TOBs into applicable calculations.

66 ANNUAL REPORT JULY 31, 2009

Additional Information (concluded)               
Section 19 Notices                 
These amounts and sources of distributions reported are only estimates  changes based on the tax regulations. The Funds will send you a Form 
and are not being provided for tax reporting purposes. The actual amounts  1099-DIV each calendar year that will tell you how to report these distribu- 
and sources of the amounts for tax reporting purposes will depend upon  tions for federal income tax purposes.     
each Fund’s investment experience during the year and may be subject to             
    Total Fiscal Year-to-Date      Percentage of Fiscal Year-to-Date   
                        Cumulative Distributions by Character          Cumulative Distributions by Character 
  Net  Net Realized    Total Per  Net  Net Realized    Total Per 
  Investment  Capital   Return of  Common  Investment  Capital  Return of  Common 
  Income  Gains  Capital  Share  Income  Gains  Capital  Share 
MuniYield Insured Investment  $0.675295  —  —  $0.675295  100%  0%  0%  100% 
MuniYield New Jersey Insured  $0.668000  $0.017069  —  $0.685069  98%  2%  0%  100% 

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and for-
mer fund investors and individual clients (collectively, “Clients”) and to
safeguarding their non-public personal information. The following informa-
tion is provided to help you understand what personal information
BlackRock collects, how we protect that information and why in certain
cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations
require BlackRock to provide you with additional or different privacy-related
rights beyond what is set forth below, then BlackRock will comply with those
specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and
about you from different sources, including the following: (i) information we
receive from you or, if applicable, your financial intermediary, on applica-
tions, forms or other documents; (ii) information about your transactions
with us, our affiliates, or others; (iii) information we receive from a consumer
reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-
public personal information about its Clients, except as permitted by law
or as is necessary to respond to regulatory requests or to service Client
accounts. These non-affiliated third parties are required to protect the
confidentiality and security of this information and to use it only for its
intended purpose.

We may share information with our affiliates to service your account or to
provide you with information about other BlackRock products or services
that may be of interest to you. In addition, BlackRock restricts access
to non-public personal information about its Clients to those BlackRock
employees with a legitimate business need for the information. BlackRock
maintains physical, electronic and procedural safeguards that are designed
to protect the non-public personal information of its Clients, including pro-
cedures relating to the proper storage and disposal of such information.

ANNUAL REPORT JULY 31, 2009 67


This report is transmitted to shareholders only. It is not a prospectus. Past performance results shown in this report should not be considered a representation
of future performance. The Funds have leveraged their Common Shares, which creates risks for Common Shareholders, including the likelihood of greater
volatility of net asset value and market price of the Common Shares, and the risk that fluctuations in the short-term dividend rates of the Preferred Shares,
currently set at the maximum reset rate as a result of failed auctions, may affect the yield to Common Shareholders. Statements and other information
herein are as dated and are subject to change.


Item 2 – Code of Ethics – The registrant (or the “Fund”) has adopted a code of ethics, as of the end of the
period covered by this report, applicable to the registrant’s principal executive officer, principal
financial officer and principal accounting officer, or persons performing similar functions. During
the period covered by this report, there have been no amendments to or waivers granted under the
code of ethics. A copy of the code of ethics is available without charge at www.blackrock.com.

Item 3 – Audit Committee Financial Expert – The registrant’s board of directors or trustees, as applicable
(the “board of directors”) has determined that (i) the registrant has the following audit committee
financial experts serving on its audit committee and (ii) each audit committee financial expert is
independent:
Kent Dixon
Frank J. Fabozzi
James T. Flynn
W. Carl Kester
Karen P. Robards
Robert S. Salomon, Jr. (retired effective December 31, 2008)

The registrant’s board of directors has determined that W. Carl Kester and Karen P. Robards qualify
as financial experts pursuant to Item 3(c)(4) of Form N-CSR.

Prof. Kester has a thorough understanding of generally accepted accounting principles, financial
statements and internal control over financial reporting as well as audit committee functions. Prof.
Kester has been involved in providing valuation and other financial consulting services to corporate
clients since 1978. Prof. Kester’s financial consulting services present a breadth and level of
complexity of accounting issues that are generally comparable to the breadth and complexity of
issues that can reasonably be expected to be raised by the registrant’s financial statements.

Ms. Robards has a thorough understanding of generally accepted accounting principles, financial
statements and internal control over financial reporting as well as audit committee functions. Ms.
Robards has been President of Robards & Company, a financial advisory firm, since 1987. Ms.
Robards was formerly an investment banker for more than 10 years where she was responsible for
evaluating and assessing the performance of companies based on their financial results. Ms.
Robards has over 30 years of experience analyzing financial statements. She also is a member of
the audit committee of one publicly held company and a non-profit organization.

Under applicable securities laws, a person determined to be an audit committee financial expert will
not be deemed an “expert” for any purpose, including without limitation for the purposes of Section
11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee
financial expert. The designation or identification as an audit committee financial expert does not
impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and
liabilities imposed on such person as a member of the audit committee and board of directors in the
absence of such designation or identification.

Item 4 – Principal Accountant Fees and Services           
           (a) Audit Fees   (b) Audit-Related Fees1             (c) Tax Fees2       (d) All Other Fees3 
  Current  Previous  Current  Previous  Current  Previous  Current  Previous 
  Fiscal Year  Fiscal Year  Fiscal Year  Fiscal Year  Fiscal Year  Fiscal Year  Fiscal Year  Fiscal Year 
Entity Name  End  End  End  End  End  End  End  End 
BlackRock                 
MuniHoldings New  $29,600  $28,700  $3,500  $3,500  $6,100  $6,100  $1,028  $1,049 
Jersey Insured Fund,                 
Inc.                 

1 The nature of the services include assurance and related services reasonably related to the performance of the audit of financial
statements not included in Audit Fees.
2 The nature of the services include tax compliance, tax advice and tax planning.
3 The nature of the services include a review of compliance procedures and attestation thereto.

(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The registrant’s audit committee (the “Committee”) has adopted policies and procedures with
regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to
the registrant on an annual basis require specific pre-approval by the Committee. The Committee
also must approve other non-audit services provided to the registrant and those non-audit services
provided to the registrant’s affiliated service providers that relate directly to the operations and the
financial reporting of the registrant. Certain of these non-audit services that the Committee believes
are a) consistent with the SEC’s auditor independence rules and b) routine and recurring services
that will not impair the independence of the independent accountants may be approved by the
Committee without consideration on a specific case-by-case basis (“general pre-approval”). The
term of any general pre-approval is 12 months from the date of the pre-approval, unless the
Committee provides for a different period. Tax or other non-audit services provided to the registrant
which have a direct impact on the operation or financial reporting of the registrant will only be
deemed pre-approved provided that any individual project does not exceed $10,000 attributable to
the registrant or $50,000 for all of the registrants the Committee oversees. For this purpose,
multiple projects will be aggregated to determine if they exceed the previously mentioned cost
levels.
Any proposed services exceeding the pre-approved cost levels will require specific pre-
approval by the Committee, as will any other services not subject to general pre-approval (e.g.,
unanticipated but permissible services). The Committee is informed of each service approved
subject to general pre-approval at the next regularly scheduled in-person board meeting. At this
meeting, an analysis of such services is presented to the Committee for ratification. The Committee
may delegate to one or more of its members the authority to approve the provision of and fees for
any specific engagement of permitted non-audit services, including services exceeding pre-approved
cost levels.

(e)(2) None of the services described in each of Items 4(b) through (d) were approved by the audit
committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not Applicable

(g) Affiliates’ Aggregate Non-Audit Fees:

Entity Name

Current Fiscal Year

Previous Fiscal Year

  End  End 
BlackRock MuniHoldings New  $418,128  $415,649 
Jersey Insured Fund, Inc.     

(h) The registrant’s audit committee has considered and determined that the provision of non-audit
services that were rendered to the registrant’s investment adviser (not including any non-affiliated
sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by
the registrant’s investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the registrant that were not
pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with
maintaining the principal accountant’s independence.

Regulation S-X Rule 2-01(c)(7)(ii) – $407,500, 0%

Item 5 – Audit Committee of Listed Registrants – The following individuals are members of the registrant’s
separately-designated standing audit committee established in accordance with Section 3(a)(58)(A)
of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(58)(A)):

Kent Dixon
Frank J. Fabozzi
James T. Flynn
W. Carl Kester
Karen P. Robards
Robert S. Salomon, Jr. (retired effective December 31, 2008)

Item 6 – Investments
(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed
under Item 1 of this form.
(b) Not Applicable due to no such divestments during the semi-annual period covered since the
previous Form N-CSR filing.

Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment
Companies – The board of directors has delegated the voting of proxies for the Fund securities to the
Fund’s investment adviser (“Investment Adviser”) pursuant to the Investment Adviser’s proxy
voting guidelines. Under these guidelines, the Investment Adviser will vote proxies related to Fund
securities in the best interests of the Fund and its stockholders. From time to time, a vote may
present a conflict between the interests of the Fund’s stockholders, on the one hand, and those of the
Investment Adviser, or any affiliated person of the Fund or the Investment Adviser, on the other. In
such event, provided that the Investment Adviser’s Equity Investment Policy Oversight Committee,
or a sub-committee thereof (the “Oversight Committee”) is aware of the real or potential conflict or
material non-routine matter and if the Oversight Committee does not reasonably believe it is able to
follow its general voting guidelines (or if the particular proxy matter is not addressed in the
guidelines) and vote impartially, the Oversight Committee may retain an independent fiduciary to
advise the Oversight Committee on how to vote or to cast votes on behalf of the Investment
Adviser’s clients. If the Investment Adviser determines not to retain an independent fiduciary, or
does not desire to follow the advice of such independent fiduciary, the Oversight Committee shall
determine how to vote the proxy after consulting with the Investment Adviser’s Portfolio
Management Group and/or the Investment Adviser’s Legal and Compliance Department and

concluding that the vote cast is in its client’s best interest notwithstanding the conflict. A copy of the
Fund’s Proxy Voting Policy and Procedures are attached as Exhibit 99.PROXYPOL. Information on
how the Fund voted proxies relating to portfolio securities during the most recent 12-month period
ended June 30 is available without charge, (i) at www.blackrock.com and (ii) on the SEC’s website
at http://www.sec.gov.

Item 8 – Portfolio Managers of Closed-End Management Investment Companies – as of July 31, 2009.

(a)(1) The registrant (or “Fund”) is managed by a team of investment professionals comprised of F.
Howard Downs, Director at BlackRock, Theodore R. Jaeckel, Jr., CFA, Managing Director at
BlackRock and Walter O’Connor, Managing Director at BlackRock. Each is a member of
BlackRock’s municipal tax-exempt management group. Each is jointly responsible for the
day-to-day management of the registrant’s portfolio, which includes setting the registrant’s
overall investment strategy, overseeing the management of the registrant and/or selection of
its investments. Messrs. Downs, Jaeckel and O’Connor have been members of the registrant’s
portfolio management team since 2008, 2006 and 2006, respectively.

             Portfolio Manager  Biography         
             F. Howard Downs  Director of BlackRock, Inc. since 2004; Vice President of BlackRock, Inc. 
    from 1999 to 2004.         
             Theodore R. Jaeckel, Jr.  Managing Director at BlackRock, Inc. since 2006; Managing Director of 
    MLIM from 2005 to 2006; Director of MLIM from 1997 to 2005.   
             Walter O’Connor  Managing Director of BlackRock, Inc. since 2006; Managing Director of 
    MLIM from 2003 to 2006; Director of MLIM from 1998 to 2003.   
             (a)(2) As of July 31, 2009:           
  (ii) Number of Other Accounts Managed  (iii) Number of Other Accounts and 
  and Assets by Account Type  Assets for Which Advisory Fee is 
          Performance-Based   
  Other  Other Pooled    Other  Other Pooled   
(i) Name of  Registered  Investment  Other  Registered  Investment  Other 
Portfolio Manager  Investment  Vehicles  Accounts  Investment  Vehicles  Accounts 
  Companies      Companies     
Walter O’Connor  76  0  0  0  0  0 
  $17.6 Billion  $0  $0  $0  $0  $0 
Theodore R. Jaeckel,  76  0  0  0  0  0 
  $17.6 Billion  $0  $0  $0  $0  $0 
F. Howard Downs  9  3  34  0  0  0 
  $1.48 Billion  $108.9 Million  $1.36 Billion  $0  $0  $0 
           (iv) Potential Material Conflicts of Interest         

BlackRock and its affiliates (collectively, herein “BlackRock”) has built a professional working
environment, firm-wide compliance culture and compliance procedures and systems designed to
protect against potential incentives that may favor one account over another. BlackRock has adopted
policies and procedures that address the allocation of investment opportunities, execution of
portfolio transactions, personal trading by employees and other potential conflicts of interest that are

designed to ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock
furnishes investment management and advisory services to numerous clients in addition to the Fund,
and BlackRock may, consistent with applicable law, make investment recommendations to other
clients or accounts (including accounts which are hedge funds or have performance or higher fees
paid to BlackRock, or in which portfolio managers have a personal interest in the receipt of such
fees), which may be the same as or different from those made to the Fund. In addition, BlackRock,
its affiliates and significant shareholders and any officer, director, stockholder or employee may or
may not have an interest in the securities whose purchase and sale BlackRock recommends to the
Fund. BlackRock, or any of its affiliates or significant shareholders, or any officer, director,
stockholder, employee or any member of their families may take different actions than those
recommended to the Fund by BlackRock with respect to the same securities. Moreover, BlackRock
may refrain from rendering any advice or services concerning securities of companies of which any
of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees are
directors or officers, or companies as to which BlackRock or any of its affiliates or significant
shareholders or the officers, directors and employees of any of them has any substantial economic
interest or possesses material non-public information. Each portfolio manager also may manage
accounts whose investment strategies may at times be opposed to the strategy utilized for a fund. In
this connection, it should be noted that a portfolio manager may currently manage certain accounts
that are subject to performance fees. In addition, a portfolio manager may assist in managing certain
hedge funds and may be entitled to receive a portion of any incentive fees earned on such funds and
a portion of such incentive fees may be voluntarily or involuntarily deferred. Additional portfolio
managers may in the future manage other such accounts or funds and may be entitled to receive
incentive fees.

As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly.
When BlackRock purchases or sells securities for more than one account, the trades must be
allocated in a manner consistent with its fiduciary duties. BlackRock attempts to allocate
investments in a fair and equitable manner among client accounts, with no account receiving
preferential treatment. To this end, BlackRock has adopted a policy that is intended to ensure that
investment opportunities are allocated fairly and equitably among client accounts over time. This
policy also seeks to achieve reasonable efficiency in client transactions and provide BlackRock with
sufficient flexibility to allocate investments in a manner that is consistent with the particular
investment discipline and client base.

(a)(3) As of July 31, 2009:

Portfolio Manager Compensation Overview

BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and
its career path emphasis at all levels reflect the value senior management places on key resources.
Compensation may include a variety of components and may vary from year to year based on a
number of factors. The principal components of compensation include a base salary, a performance-
based discretionary bonus, participation in various benefits programs and one or more of the
incentive compensation programs established by BlackRock such as its Long-Term Retention and
Incentive Plan and Restricted Stock Program.

Base compensation. Generally, portfolio managers receive base compensation based on their
seniority and/or their position with the firm. Senior portfolio managers who perform additional
management functions within the portfolio management group or within BlackRock may receive
additional compensation for serving in these other capacities.

Discretionary Incentive Compensation
Discretionary incentive compensation is a function of several components: the performance of
BlackRock, Inc., the performance of the portfolio manager’s group within BlackRock, the
investment performance, including risk-adjusted returns, of the firm’s assets under management or
supervision by that portfolio manager relative to predetermined benchmarks, and the individual’s
seniority, role within the portfolio management team, teamwork and contribution to the overall
performance of these portfolios and BlackRock. In most cases, including for the portfolio managers
of the Fund, these benchmarks are the same as the benchmark or benchmarks against which the
performance of the Fund or other accounts managed by the portfolio managers are measured.
BlackRock’s Chief Investment Officers determine the benchmarks against which the performance of
funds and other accounts managed by each portfolio manager is compared and the period of time
over which performance is evaluated. With respect to the portfolio managers, such benchmarks for
the Fund include a combination of market-based indices (e.g. Barclays Capital Municipal Bond
Index), certain customized indices and certain fund industry peer groups.

BlackRock’s Chief Investment Officers make a subjective determination with respect to the
portfolio managers’ compensation based on the performance of the funds and other accounts
managed by each portfolio manager relative to the various benchmarks noted above. Performance is
measured on both a pre-tax and after-tax basis over various time periods including 1, 3, 5 and 10-
year periods, as applicable.

Distribution of Discretionary Incentive Compensation
Discretionary incentive compensation is distributed to portfolio managers in a combination of cash
and BlackRock, Inc. restricted stock units which vest ratably over a number of years. The
BlackRock, Inc. restricted stock units, if properly vested, will be settled in BlackRock, Inc. common
stock. Typically, the cash bonus, when combined with base salary, represents more than 60% of
total compensation for the portfolio managers. Paying a portion of annual bonuses in stock puts
compensation earned by a portfolio manager for a given year “at risk” based on BlackRock’s ability
to sustain and improve its performance over future periods.

Long-Term Retention and Incentive Plan (“LTIP”) — The LTIP is a long-term incentive
plan that seeks to reward certain key employees. Prior to 2006, the plan provided for the grant of
awards that were expressed as an amount of cash that, if properly vested and subject to the
attainment of certain performance goals, will be settled in cash and/or in BlackRock, Inc. common
stock. Beginning in 2006, awards are granted under the LTIP in the form of BlackRock, Inc.
restricted stock units that, if properly vested and subject to the attainment of certain performance
goals, will be settled in BlackRock, Inc. common stock. Messrs. O’Connor, Jaeckel and Downs have
each received awards under the LTIP.

Deferred Compensation Program — A portion of the compensation paid to eligible
BlackRock employees may be voluntarily deferred into an account that tracks the performance of
certain of the firm’s investment products. Each participant in the deferred compensation program is

permitted to allocate his deferred amounts among the various investment options. Messrs.
O’Connor, Jaeckel and Downs have each participated in the deferred compensation program.

Other compensation benefits. In addition to base compensation and discretionary incentive
compensation, portfolio managers may be eligible to receive or participate in one or more of the
following:

Incentive Savings Plans — BlackRock, Inc. has created a variety of incentive savings plans in which
BlackRock employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement
Savings Plan (RSP), and the BlackRock Employee Stock Purchase Plan (ESPP). The employer
contribution components of the RSP include a company match equal to 50% of the first 6% of
eligible pay contributed to the plan capped at $4,000 per year, and a company retirement
contribution equal to 3-5% of eligible compensation. The RSP offers a range of investment options,
including registered investment companies managed by the firm. BlackRock contributions follow
the investment direction set by participants for their own contributions or, absent employee
investment direction, are invested into a balanced portfolio. The ESPP allows for investment in
BlackRock common stock at a 5% discount on the fair market value of the stock on the purchase
date. Annual participation in the ESPP is limited to the purchase of 1,000 shares or a dollar value of
$25,000. Each portfolio manager is eligible to participate in these plans.

(a)(4) Beneficial Ownership of Securities – July 31, 2009.

Portfolio Manager  Dollar Range of Equity Securities 
  Beneficially Owned 
Walter O’Connor  None 
Theodore R. Jaeckel, Jr.  None 
F. Howard Downs  None 

Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated
Purchasers – Not Applicable due to no such purchases during the period covered by this report.

Item 10 – Submission of Matters to a Vote of Security Holders – The registrant’s Nominating and
Governance Committee will consider nominees to the board of directors recommended by
shareholders when a vacancy becomes available. Shareholders who wish to recommend a nominee
should send nominations that include biographical information and set forth the qualifications of the
proposed nominee to the registrant’s Secretary. There have been no material changes to these
procedures.

Item 11 – Controls and Procedures

11(a) – The registrant’s principal executive and principal financial officers or persons performing similar
functions have concluded that the registrant’s disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as
of a date within 90 days of the filing of this report based on the evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13(a)-15(b) under the Securities
Exchange Act of 1934, as amended.

11(b) – There were no changes in the registrant’s internal control over financial reporting (as defined in
Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period
covered by this report that have materially affected, or are reasonably likely to materially affect, the
registrant’s internal control over financial reporting.

Item 12 – Exhibits attached hereto

12(a)(1) – Code of Ethics – See Item 2

12(a)(2) – Certifications – Attached hereto

12(a)(3) – Not Applicable

12(b) – Certifications – Attached hereto

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company
Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

BlackRock MuniHoldings New Jersey Insured Fund, Inc.

By: /s/ Anne F. Ackerley
Anne F. Ackerley
Chief Executive Officer of
BlackRock MuniHoldings New Jersey Insured Fund, Inc.

Date: September 22, 2009

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company
Act of 1940, this report has been signed below by the following persons on behalf of the registrant
and in the capacities and on the dates indicated.

By: /s/ Anne F. Ackerley
Anne F. Ackerley
Chief Executive Officer (principal executive officer) of
BlackRock MuniHoldings New Jersey Insured Fund, Inc.

Date: September 22, 2009

By: /s/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock MuniHoldings New Jersey Insured Fund, Inc.

Date: September 22, 2009