muniholdins2 -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing
UNITED STATES 
SECURITIES AND EXCHANGE COMMISSION 

Washington, D.C. 20549 

 

FORM N-Q 
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED 

MANAGEMENT INVESTMENT COMPANY 

 

Investment Company Act file number 811-09191 
Name of Fund: BlackRock MuniHoldings Insured Fund II, Inc. (MUE) 
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809 
Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock 

MuniHoldings Insured Fund II, Inc., 800 Scudders Mill Road, Plainsboro, NJ, 08536.

Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011

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

 Date of fiscal year end: 09/30/2008

Date of reporting period: 10/01/2007 – 12/31/2007

Item 1 – Schedule of Investments

BlackRock MuniHoldings Insured Fund II, Inc.                 
Schedule of Investments as of December 31, 2007 (Unaudited)            (in Thousands) 
 
 
 
    Face                     
State    Amount    Municipal Bonds            Value 
 
 
 
 
 
Alabama - 3.0%    $ 3,580    Jefferson County, Alabama, Limited Obligation School Warrants, Series A, 5.50% due 1/01/2022    $ 3,848 
    5,000    Mobile, Alabama, GO, Refunding, 5.25% due 8/15/2020 (a)            5,353 
 
 
 
 
 
Alaska - 1.3%    370    Anchorage, Alaska, Water Revenue Refunding Bonds, 6% due 9/01/2009 (a)(j)        391 
    1,630    Anchorage, Alaska, Water Revenue Refunding Bonds, 6% due 9/01/2024 (a)        1,708 
    1,700    Matanuska-Susitna Boro, Alaska, GO, Series A, 6% due 3/01/2010 (i)(j)        1,802 
 
 
 
 
California - 28.3%    1,950    Anaheim, California, Redevelopment Agency, Tax Allocation Refunding Bonds (Merged Redevelopment Project Area),         
        Series A, 5% due 2/01/2031 (g)                1,995 
    2,100    California State, GO, 5.50% due 4/01/2014 (j)                2,351 
    2,935    California State, Various Purpose, GO, 5.25% due 12/01/2022 (g)        3,127 
    9,350    California State, Veterans, GO, Refunding, AMT, Series BZ, 5.35% due 12/01/2021 (i)        9,374 
    2,405    Dixon, California, Unified School District, GO (Election of 2002), 5.20% due 8/01/2044 (g)        2,480 
    8,460    East Side Union High School District, California, Santa Clara County, GO (Election of 2002), Series D, 5% due 8/01/2029 (p)        8,674 
    4,240    Modesto, California, Schools Infrastructure Financing Agency, Special Tax Bonds, 5.50% due 9/01/2036 (a)        4,452 
    7,365    Palomar Pomerado Health Care District, California, GO (Election of 2004), Series A, 5.125% due 8/01/2037 (i)        7,685 
    5,000    Port of Oakland, California, Revenue Refunding Bonds, AMT, Series L, 5.375% due 11/01/2027 (c)        5,113 
    1,500    Rancho Cucamonga, California, Redevelopment Agency, Tax Allocation Refunding Bonds (Rancho Redevelopment Project),         
        Series A, 5% due 9/01/2034 (i)                1,534 
    2,985    Roseville, California, Joint Union High School District, GO (Election of 2004), Series A, 5% due 8/01/2029 (c)        3,088 
    150    Sacramento, California, City Financing Authority, Capital Improvement Revenue Bonds, 5% due 12/01/2027 (a)        154 
    1,480    San Diego, California, Community College District, GO (Election of 2002), 5% due 5/01/2030 (g)        1,540 
    1,250    San Francisco, California, City and County Airport Commission, International Airport, Special Facilities Lease Revenue Bonds     
        (SFO Fuel Company LLC), AMT, Series A, 6.10% due 1/01/2020 (g)        1,277 
    3,800    San Jose, California, GO (Libraries, Parks and Public Safety Projects), 5% due 9/01/2030 (i)        3,923 
    5,190    Sequoia, California, Unified High School District, GO, Refunding, Series B, 5.50% due 7/01/2035 (g)        5,657 
    4,485    Stockton, California, Public Financing Revenue Bonds (Redevelopment Projects), Series A, 5.25% due 9/01/2031 (k)        4,443 
    2,930    Stockton, California, Public Financing Revenue Bonds (Redevelopment Projects), Series A, 5.25% due 9/01/2034 (k)        2,901 
    2,915    Tustin, California, Unified School District, Senior Lien Special Tax Bonds (Community Facilities District Number 97-1),         
        Series A, 5% due 9/01/2032 (g)                2,959 
 
 
 
 
 
 
Portfolio Abbreviations                     
 
 
 
 
 
To simplify the listings of BlackRock MuniHoldings Insured Fund II, Inc.'s portfolio holdings in the Schedule of Investments, we have abbreviated the names of many of         
the securities according to the list below.                     
                             AMT    Alternative Minimum Tax (subject to)    IDA    Industrial Development Authority         
                             COP    Certificates of Participation    M/F    Multi-Family         
                             EDA    Economic Development Authority    PCR    Pollution Control Revenue Bonds         
                             GO    General Obligation Bonds    S/F    Single-Family         
                             HDA    Housing Development Authority    VRDN    Variable Rate Demand Notes         
                             HFA    Housing Finance Agency                 

1

BlackRock MuniHoldings Insured Fund II, Inc.         
Schedule of Investments as of December 31, 2007 (Unaudited)    (in Thousands) 
 
    Face             
State    Amount    Municipal Bonds        Value 
 
 
 
 
    $ 4,620    Tustin, California, Unified School District, Senior Lien Special Tax Bonds (Community Facilities District Number 97-1),         
        Series A, 5% due 9/01/2038 (g)        $ 4,685 
    3,000    University of California Revenue Bonds (Multiple Purpose Projects), Series Q, 5% due 9/01/2022 (g)        3,137 
    5,400    Vista, California, COP (Community Projects), 5% due 5/01/2037 (i)        5,492 
 
 
 
 
Colorado - 3.7%    6,285    Aurora, Colorado, COP, 5.75% due 12/01/2010 (a)(j)        6,737 
    230    Colorado HFA, Revenue Refunding Bonds (S/F Program), AMT, Senior Series A-2, 7.50% due 4/01/2031        238 
    4,000    Colorado Health Facilities Authority, Hospital Revenue Refunding Bonds (Poudre Valley Health Care), Series A,         
        5.75% due 12/01/2009 (g)(j)        4,238 
 
 
 
 
Connecticut - 0.5%    1,520    Connecticut State, GO, Refunding, Series D, 5% due 12/01/2024 (i)        1,601 
 
 
 
 
District of Columbia - 2.7%    2,500    District of Columbia, Deed Tax Revenue Bonds (Housing Production Trust Fund - New Communities Project), Series A,         
        5% due 6/01/2032 (i)        2,599 
    5,530    Metropolitan Washington Airports Authority, D.C., Airport System Revenue Refunding Bonds, AMT, Series A,         
        5% due 10/01/2035 (g)        5,521 
 
 
 
 
Florida - 26.3%    2,310    Broward County, Florida, HFA, S/F Mortgage Revenue Refunding Bonds, AMT, Series E, 5.90% due 10/01/2039 (e)(f)        2,475 
    3,385    Hillsborough County, Florida, HFA, S/F Mortgage Revenue Bonds, AMT, Series 1, 5.375% due 10/01/2049 (e)(f)        3,476 
    5,500    Hillsborough County, Florida, IDA, Hospital Revenue Bonds (H. Lee Moffitt Cancer Center Project), Series A,         
        5.25% due 7/01/2037        5,395 
    7,740    Jacksonville, Florida, Health Facilities Authority, Hospital Revenue Bonds (Baptist Medical Center Project),         
        5% due 8/15/2037 (g)        7,804 
    4,500    Lee County, Florida, HFA, S/F Mortgage Revenue Bonds (Multi-County Program), AMT, Series A-2, 6% due 9/01/2040 (e)(f)    4,957 
    5,000    Lee Memorial Health System, Florida, Hospital Revenue Bonds, Series A, 5% due 4/01/2032 (a)        5,062 
    3,500    Miami, Florida, Special Obligation Revenue Bonds (Street and Sidewalk Improvement Program), 5% due 1/01/2037 (i)        3,538 
    6,730    Miami-Dade County, Florida, Aviation Revenue Bonds, AMT, Series A, 5% due 10/01/2033 (g)        6,700 
    14,375    Miami-Dade County, Florida, Aviation Revenue Refunding Bonds (Miami International Airport), AMT, Series A,         
        5% due 10/01/2040 (p)        13,915 
    3,670    Miami-Dade County, Florida, Special Obligation Revenue Bonds, Sub-Series A, 5.24% due 10/01/2037 (i)(l)        789 
    2,100    Okaloosa County, Florida, Water and Sewer Revenue Refunding Bonds, 5% due 7/01/2036 (g)        2,156 
    2,425    Orange County, Florida, School Board, COP, Series A, 5% due 8/01/2032 (c)        2,469 
    6,300    Pasco County, Florida, Half-Cent Sales Tax Revenue Bonds, 5.125% due 12/01/2028 (a)        6,519 
    6,500    Saint Petersburg, Florida, Public Utilities Revenue Refunding Bonds, 5% due 10/01/2035 (i)        6,665 
    3,725    South Florida Water Management District, COP, 5% due 10/01/2036 (a)        3,794 
    4,200    University of North Florida Financing Corporation, Capital Improvement Revenue Bonds (Housing Project),         
        5% due 11/01/2037 (c)        4,285 
 
 
 
 
Georgia - 2.2%    6,290    Augusta, Georgia, Water and Sewer Revenue Bonds, 5.25% due 10/01/2034 (g)        6,625 
 
 
 
 
Idaho - 0.1%    410    Idaho Housing and Finance Association, S/F Mortgage Revenue Bonds, AMT, Series E, 6% due 1/01/2032        419 
 
 
 
 
Illinois - 7.4%    2,185    Chicago, Illinois, GO (Neighborhoods Alive 21 Program), Series A, 6% due 7/01/2010 (c)(j)        2,356 
    18,130    Chicago, Illinois, GO, Series A, 6% due 7/01/2010 (c)(j)        19,549 
    400    Illinois State Toll Highway Authority, Toll Highway Revenue Refunding Bonds, VRDN, Series B, 3.40% due 1/01/2017 (g)(n)    400 
    125    Lake, Cook, Kane and McHenry Counties, Illinois, Community Unit School District Number 220, GO, 6% due 12/01/2020 (c)    134 
 
 
 

2

BlackRock MuniHoldings Insured Fund II, Inc.         
Schedule of Investments as of December 31, 2007 (Unaudited)    (in Thousands) 
 
    Face             
State    Amount    Municipal Bonds        Value 
 
 
 
 
Indiana - 5.8%    $ 8,000    Indiana Municipal Power Agency, Power Supply System Revenue Bonds, Series A, 5% due 1/01/2042 (i)        $ 8,145 
    9,280    Shelbyville, Indiana, Elementary School Building Corporation Revenue Bonds, First Mortgage, 5.75% due 1/15/2009 (g)(j)        9,628 
 
 
 
 
Kansas - 2.1%    3,510    Kansas State Development Finance Authority, Health Facilities Revenue Bonds (Sisters of Charity Leavenworth), Series J, 6.125%     
        due 12/01/2020        3,700 
    2,695    Sedgwick and Shawnee Counties, Kansas, S/F Mortgage Revenue Bonds, AMT, Series A-2, 6.20% due 12/01/2033 (f)        2,718 
 
 
 
 
Louisiana - 3.7%    11,125    Louisiana State, Gas and Fuels Tax Revenue Bonds, Series A, 5% due 5/01/2041 (c)        11,260 
 
 
 
 
Massachusetts - 6.4%    5,535    Massachusetts Bay Transportation Authority, Sales Tax Revenue Refunding Bonds, Senior Series A, 5% due 7/01/2035        5,593 
    8,750    Massachusetts State Health and Educational Facilities Authority Revenue Bonds (Lahey Clinic Medical Center), Series D, 5.25%     
        due 8/15/2037        8,736 
    5,000    Massachusetts State School Building Authority, Dedicated Sales Tax Revenue Bonds, Series A, 5% due 8/15/2030 (g)        5,205 
 
 
 
 
Michigan - 0.3%    1,000    Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Mercy-Mount Clemens), Series A,         
        6% due 5/15/2009 (i)(j)        1,049 
 
 
 
 
Minnesota - 4.5%    2,555    Prior Lake, Minnesota, Independent School District Number 719, GO, 5.50% due 2/01/2016 (g)        2,666 
    1,830    Prior Lake, Minnesota, Independent School District Number 719, GO, 5.50% due 2/01/2017 (g)        1,909 
    3,570    Prior Lake, Minnesota, Independent School District Number 719, GO, 5.50% due 2/01/2018 (g)        3,725 
    2,840    Prior Lake, Minnesota, Independent School District Number 719, GO, 5.50% due 2/01/2019 (g)        2,963 
    2,185    Sauk Rapids, Minnesota, Independent School District Number 47, GO, Series A, 5.625% due 2/01/2018 (i)        2,331 
 
 
 
 
Nevada - 0.0%    105    Nevada Housing Division, S/F Mortgage Revenue Bonds, AMT, Series A-2, 6.30% due 4/01/2022 (i)        106 
 
 
 
 
New Hampshire - 0.2%    600    New Hampshire Health and Educational Facilities Authority, Revenue Refunding Bonds (Dartmouth Hitchcock Obligation),         
        VRDN, Series A, 3.42% due 8/01/2031 (g)(n)        600 
 
 
 
 
New Jersey - 8.4%    3,965    New Jersey EDA, Cigarette Tax Revenue Bonds, 5.75% due 6/15/2029        3,884 
    6,200    New Jersey EDA, Cigarette Tax Revenue Bonds, 5.75% due 6/15/2034 (b)        6,666 
    11,000    New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A, 5.25% due 7/01/2033 (i)        11,562 
    3,000    New Jersey State Turnpike Authority, Turnpike Revenue Bonds, Series C, 5% due 1/01/2030 (g)        3,113 
    300    New Jersey State Turnpike Authority, Turnpike Revenue Bonds, VRDN, Series C-2, 3.35% due 1/01/2024 (g)(n)        300 
 
 
 
 
New Mexico - 3.6%    5,000    Farmington, New Mexico, PCR, Refunding (Public Service Company of New Mexico - San Juan Project), Series C,         
        5.70% due 12/01/2016 (a)        5,060 
    5,480    New Mexico Finance Authority, Senior Lien State Transportation Revenue Bonds, Series A, 5.125% due 6/15/2018 (i)        5,899 
 
 
 
 
New York - 8.9%    14,000    Nassau Health Care Corporation, New York, Health System Revenue Bonds, 5.75% due 8/01/2009 (g)(j)        14,878 
    3,200    New York State Dormitory Authority, Non-State Supported Debt Revenue Bonds (New York University), Series A,         
        5% due 7/01/2032 (a)        3,340 
    5,755    New York State Dormitory Authority Revenue Bonds (School Districts Financing Program), Series D, 5.25% due 10/01/2023 (i)    6,127 
    2,000    Tobacco Settlement Financing Corporation of New York Revenue Bonds, Series A-1, 5.25% due 6/01/2021 (a)        2,126 
    500    Triborough Bridge and Tunnel Authority, New York, General Purpose Revenue Refunding Bonds, VRDN, Series C,         
        3.39% due 1/01/2032 (a)(n)        500 
 
 
 
 
North Carolina - 0.4%    1,235    North Carolina HFA, Home Ownership Revenue Bonds, AMT, Series 14-A, 5.35% due 1/01/2022 (a)        1,249 
 
 
 
 
Ohio - 0.9%    1,745    Aurora, Ohio, City School District, COP, 6.10% due 12/01/2009 (i)(j)        1,861 
    1,000    Kent State University, Ohio, University Revenue Bonds, 6% due 5/01/2024 (a)        1,061 
 
 
 
 

3

BlackRock MuniHoldings Insured Fund II, Inc.     
Schedule of Investments as of December 31, 2007 (Unaudited)    (in Thousands) 
 
    Face         
State    Amount    Municipal Bonds    Value 
 
 
 
Oklahoma - 0.9%    $ 2,385    Claremore, Oklahoma, Public Works Authority, Capital Improvement Revenue Refunding Bonds, Series A,     
        5.25% due 6/01/2014 (g)(j)    $ 2,654 
 
 
 
Pennsylvania - 3.8%    6,435    Pennsylvania State Higher Educational Facilities Authority, State System of Higher Education Revenue Bonds, Series O, 5.125% 
        due 6/15/2024 (a)    6,442 
    4,290    Pittsburgh, Pennsylvania, GO, Series C, 5.25% due 9/01/2017 (g)    4,775 
    305    Washington County, Pennsylvania, Capital Funding Authority Revenue Bonds (Capital Projects and Equipment Program), 6.15% 
        due 12/01/2029 (a)    305 
 
 
 
Rhode Island - 3.6%    5,555    Providence, Rhode Island, Redevelopment Agency Revenue Refunding Bonds (Public Safety and Municipal Buildings),     
        Series A, 5.75% due 4/01/2010 (a)(j)    5,922 
    4,685    Rhode Island State Health and Educational Building Corporation Revenue Bonds (Rhode Island School of Design), Series D,     
        5.50% due 8/15/2031 (p)    4,984 
 
 
 
South Carolina - 5.6%    1,490    South Carolina Housing Finance and Development Authority, Mortgage Revenue Refunding Bonds, AMT, Series A-2,     
        6.35% due 7/01/2019 (g)    1,541 
    15,000    South Carolina State Public Service Authority, Revenue Refunding Bonds, Series A, 5% due 1/01/2042 (a)    15,472 
 
 
 
Tennessee - 1.2%    3,500    Metropolitan Government of Nashville and Davidson County, Tennessee, Health and Education Facilities Board Revenue     
        Refunding Bonds (Ascension Health Credit), Series A, 5.875% due 11/15/2009 (a)(j)    3,710 
    70    Tennessee HDA, Revenue Bonds (Homeownership Program), AMT, Series 2C, 6% due 7/01/2011    73 
 
 
 
Texas - 5.1%    1,750    Austin, Texas, Convention Center Revenue Bonds (Convention Enterprises Inc.), Trust Certificates, Second Tier, Series B,     
        6% due 1/01/2011 (j)    1,880 
    1,835    Dallas-Fort Worth, Texas, International Airport Revenue Refunding and Improvement Bonds, AMT, Series A,     
        5.875% due 11/01/2017 (c)    1,933 
    2,150    Dallas-Fort Worth, Texas, International Airport Revenue Refunding and Improvement Bonds, AMT, Series A,     
        5.875% due 11/01/2018 (c)    2,261 
    2,390    Dallas-Fort Worth, Texas, International Airport Revenue Refunding and Improvement Bonds, AMT, Series A,     
        5.875% due 11/01/2019 (c)    2,513 
    115    El Paso, Texas, Water and Sewer Revenue Refunding and Improvement Bonds, Series A, 6% due 3/01/2015 (g)    126 
    170    El Paso, Texas, Water and Sewer Revenue Refunding and Improvement Bonds, Series A, 6% due 3/01/2016 (g)    186 
    180    El Paso, Texas, Water and Sewer Revenue Refunding and Improvement Bonds, Series A, 6% due 3/01/2017 (g)    197 
    4,435    Houston, Texas, Community College System, Participation Interests, COP (Alief Center Project), 5.75% due 8/15/2022 (i)    4,573 
    1,850    Midland, Texas, Certificates of Obligation, GO, 6.10% due 3/01/2010 (c)(j)    1,965 
 
 
 
Washington - 7.0%    6,885    Bellevue, Washington, GO, Refunding, 5.50% due 12/01/2039 (i)    7,420 
    3,840    Chelan County, Washington, Public Utility District Number 001, Consolidated Revenue Bonds (Chelan Hydro System), AMT,     
        Series A, 5.45% due 7/01/2037 (a)    3,921 
    1,805    Lewis County, Washington, GO, Refunding, 5.75% due 12/01/2009 (a)(j)    1,896 
    1,640    Lewis County, Washington, GO, Refunding, 5.75% due 12/01/2024 (a)    1,704 
    2,500    Seattle, Washington, Municipal Light and Power Revenue Bonds, 6% due 10/01/2009 (i)(j)    2,650 
    3,500    Seattle, Washington, Water System Revenue Bonds, Series B, 6% due 7/01/2009 (c)(j)    3,686 
 
 
 
West Virginia - 2.1%    6,210    West Virginia State Housing Development Fund, Housing Finance Revenue Refunding Bonds, Series D,     
        5.20% due 11/01/2021 (i)    6,350 
 
 
 

4

BlackRock MuniHoldings Insured Fund II, Inc.     
Schedule of Investments as of December 31, 2007 (Unaudited)    (in Thousands) 
 
    Face             
State    Amount    Municipal Bonds                       Value 
 
 
 
 
Wisconsin - 0.4%    $ 1,250    Wisconsin State Health and Educational Facilities Authority Revenue Bonds (Blood Center of Southeastern Wisconsin Project), 
        5.75% due 6/01/2034    $ 1,263 
 
 
 
Puerto Rico - 2.7%    5,725    Puerto Rico Commonwealth, Public Improvement, GO, 5.125% due 7/01/2030 (g)    5,962 
    625    Puerto Rico Commonwealth, Public Improvement, GO, Refunding, Series B, 5.25% due 7/01/2016 (j)    700 
    385    Puerto Rico Commonwealth, Public Improvement, GO, Refunding, Series B, 5.25% due 7/01/2032    386 
    1,200    Puerto Rico Electric Power Authority, Power Revenue Bonds, Series TT, 5% due 7/01/2037    1,171 
 
 
 
        Total Municipal Bonds (Cost - $455,815) - 153.1%    466,140 
 
 
 
        Municipal Bonds Transferred to Tender Option Bond Trusts (o)     
 
 
 
Arkansas - 4.1%    12,210    Arkansas State Development Finance Authority, M/F Mortgage Revenue Refunding Bonds, Series C, 5.35%     
        due 12/01/2035 (d)(i)    12,354 
 
 
 
California - 1.0%    3,000    Port of Oakland, California, Revenue Bonds, AMT, Series K, 5.75% due 11/01/2021 (c)    3,097 
 
 
 
Florida - 2.7%    8,400    Miami-Dade County, Florida, Aviation Revenue Refunding Bonds (Miami International Airport), AMT, Series A, 5%     
        due 10/01/2040 (p)        8,131 
 
 
 
 
Illinois - 2.6%    7,300    Chicago, Illinois, O'Hare International Airport Revenue Bonds, Third Lien, AMT, Series B-2, 6% due 1/01/2029 (i)    7,787 
 
 
 
Michigan - 3.4%    2,000    Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit Edison Company Pollution Control     
        Project), AMT, Series A, 5.50% due 6/01/2030 (p)    2,055 
    5,000    Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit Edison Company Pollution Control     
        Project), AMT, Series C, 5.65% due 9/01/2029 (p)    5,150 
    3,000    Saint Clair County, Michigan, Economic Revenue Refunding Bonds (Detroit Edison Co. Project), Series AA, 6.40%     
        due 8/01/2024 (a)        3,107 
 
 
 
 
New York - 2.3%    6,750    New York City, New York, Sales Tax Asset Receivable Corporation Revenue Bonds, Series A, 5.25% due 10/15/2027 (a)    7,168 
 
 
 
Texas - 5.4%    16,000    Dallas-Fort Worth, Texas, International Airport Revenue Bonds, AMT, Series A, 5.50% due 11/01/2033 (i)    16,334 
 
 
 
        Total Municipal Bonds Transferred to Tender Option Bond Trusts (Cost - $66,950) - 21.5%    65,183 
 
 
 
    Shares             
    Held    Short-Term Securities     
 
 
 
    1,289    Merrill Lynch Institutional Tax-Exempt Fund, 3.35% (h)(m)    1,289 
 
 
 
        Total Short-Term Securities (Cost - $1,289) - 0.4%    1,289 
 
 
 
        Total Investments (Cost - $524,054*) - 175.0%    532,612 
        Other Assets Less Liabilities - 2.8%    8,513 
        Liability for Trust Certificates, Including Interest Expense Payable - (10.6%)    (32,088) 
        Preferred Stock, at Redemption Value - (67.2%)    (204,643) 
        Net Assets Applicable to Common Stock - 100.0%    $ 304,394 
           
 
   * The cost and unrealized appreciation (depreciation) of investments as of December 31, 2007, as computed for federal income tax purposes, were as follows:     
         Aggregate cost        $ 492,705     
           
         Gross unrealized appreciation    $ 11,370     
         Gross unrealized depreciation      (3,293)       
   
     
         Net unrealized appreciation        $ 8,077     
           

5

BlackRock MuniHoldings Insured Fund II, Inc.
Schedule of Investments as of December 31, 2007 (Unaudited)

(in Thousands)

(a)      AMBAC Insured.
 
(b)      Assured Guaranty Insured.
 
(c)      FGIC Insured.
 
(d)      FHA Insured.
 
(e)      FHLMC Collateralized.
 
(f)      FNMA/GNMA Collateralized.
 
(g)      FSA Insured.
 
(h)      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    Dividend 
Affiliate    Activity    Income 
 
 
Merrill Lynch Institutional Tax-Exempt Fund    969    $60 
 
 

(i)      MBIA Insured.
 
(j)      Prerefunded.
 
(k)      Radian Insured.
 
(l)      Represents a zero coupon bond; the interest rate shown reflects the effective yield at the time of purchase.
 
(m)      Represents the current yield as of December 31, 2007.
 
(n)      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 disclosed is that currently in effect. This rate changes periodically based upon prevailing market rates.
 
(o)      Securities represent underlying bonds transferred to a separate securitization trust established in a tender option bond transaction in which the Fund may have acquired the residual interest certificates. These securities serve as collateral in a financing transaction.
 
(p)      XL Capital Insured.
 

6

Item 2 – Controls and Procedures

2(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 13a-15(b) under the Securities 
    Exchange Act of 1934, as amended. 
 
2(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 registrant’s last fiscal quarter that have 
    materially affected, or are reasonably likely to materially affect, the registrant’s internal control over 
    financial reporting. 

Item 3 – Exhibits

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 Insured Fund II, Inc.

By: /s/ Donald C. Burke

  Donald C. Burke
Chief Executive Officer of
BlackRock MuniHoldings Insured Fund II, Inc.

Date: February 21, 2008

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/ Donald C. Burke 
    Donald C. Burke 
    Chief Executive Officer (principal executive officer) of 
BlackRock MuniHoldings Insured Fund II, Inc.

  Date: February 21, 2008

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

Date: February 21, 2008