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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 811-07080

Name of Fund: BlackRock MuniYield Michigan Insured Fund, Inc. (MIY)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock
MuniYield Michigan Insured Fund, 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: 10/31/2008

Date of reporting period: 11/01/2007 – 01/31/2008

Item 1 – Schedule of Investments

BlackRock MuniYield Michigan Insured Fund, Inc.   
Schedule of Investments as of January 31, 2008 (Unaudited)  (in Thousands) 
                                                                                                                               Face   
                                                                                                                       Amount Municipal Bonds  Value 

Michigan - 142.4%    $ 3,600    Adrian, Michigan, City School District, GO, 5% due 5/01/2014 (d)(h)    $ 4,030 
   
 
 
    3,725    Bay City, Michigan, School District, School Building and Site, GO, 5% due 5/01/2031 (d)    3,883 
   
 
 
    3,875    Bendle, Michigan, Public School District, School Building and Site, GO, 5% due 5/01/2035 (c)    3,977 
   
 
 
    1,000    Birmingham, Michigan, City School District, School Building and Site, GO, 5% due 11/01/2033 (d)    1,034 
   
 
 
    1,000    Central Montcalm, Michigan, Public Schools, GO, 5.90% due 5/01/2009 (f)(h)    1,047 
   
 
 
    1,500    Delta County, Michigan, Economic Development Corporation, Environmental Improvement Revenue     
        Refunding Bonds (Mead Westvaco-Escanaba), AMT, Series B, 6.45% due 4/15/2012 (h)    1,695 
   
 
 
    3,000    Detroit, Michigan, City School District, GO (School Building and Site Improvement), Refunding,     
        Series A, 5% due 5/01/2021 (d)    3,210 
   
 
 
    2,300    Detroit, Michigan, City School District, GO (School Building and Site Improvement), Series A, 5.375%     
        due 5/01/2013 (c)(h)    2,596 
   
 
 
    3,100    Detroit, Michigan, City School District, GO (School Building and Site Improvement), Series B, 5%     
        due 5/01/2028 (c)    3,147 
   
 
 
    1,025    Detroit, Michigan, Water Supply System Revenue Bonds, DRIVERS, Series 200, 5.75%     
        due 7/01/2011 (c)(h)(l)    1,258 
   
 
 
    1,550    Detroit, Michigan, Water Supply System Revenue Bonds, Second Lien, Series B, 5%     
        due 7/01/2013 (f)(h)    1,725 
   
 
 
    2,420    Detroit, Michigan, Water Supply System Revenue Bonds, Second Lien, Series B, 5% due 7/01/2034 (f)    2,423 
   
 
 
    1,250    Detroit, Michigan, Water Supply System Revenue Bonds, Senior Lien, Series A, 5.875%     
        due 1/01/2010 (c)(h)    1,345 
   
 
 
    6,900    Detroit, Michigan, Water Supply System Revenue Bonds, Senior Lien, Series A, 5% due 7/01/2034 (f)    6,991 
   
 
 
    11,790    Detroit, Michigan, Water Supply System Revenue Bonds, Series B, 5.25% due 7/01/2013 (f)(h)    13,270 
   
 
 
    1,415    Detroit, Michigan, Water Supply System, Revenue Refunding Bonds, 6.25% due 7/01/2012 (c)(g)    1,519 
   
 
 
    3,900    Dickinson County, Michigan, Economic Development Corporation, Environmental Improvement     
        Revenue Refunding Bonds (International Paper Company Project), Series A, 5.75% due 6/01/2016    4,042 
   
 
 
    3,100    Dickinson County, Michigan, Healthcare System, Hospital Revenue Refunding Bonds, 5.80%     
        due 11/01/2024 (a)    3,139 
   
 
 
    1,610    East Grand Rapids, Michigan, Public School District, GO, 5.75% due 5/01/2009 (d)(h)    1,682 
   
 
 
    1,575    East Grand Rapids, Michigan, Public School District, GO, 5% due 5/01/2031 (d)    1,642 
   
 
 
    590    Eastern Michigan University, General Revenue Refunding Bonds, 6% due 6/01/2010 (b)(h)    644 
   
 
 
    435    Eastern Michigan University, General Revenue Refunding Bonds, 6% due 6/01/2020 (b)    466 
   
 
 

  Portfolio Abbreviations
To simplify the listings of BlackRock MuniYield Michigan Insured Fund, 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)    HDA    Housing Development Authority 
COP    Certificates of Participation    M/F    Multi-Family 
DRIVERS    Derivative Inverse Tax-Exempt Receipts    RIB    Residual Interest Bonds 
GO    General Obligation Bonds         

1

BlackRock MuniYield Michigan Insured Fund, Inc.     
Schedule of Investments as of January 31, 2008 (Unaudited)    (in Thousands) 
 
Face         
Amount    Municipal Bonds    Value 
 
 
$ 1,500    Eastern Michigan University Revenue Bonds, Series B, 5.60% due 6/01/2010 (c)(h)    $ 1,611 
 
 
1,310    Eastern Michigan University Revenue Bonds, Series B, 5.625% due 6/01/2010 (c)(h)    1,407 
 
 
2,425    Eaton Rapids, Michigan, Public Schools, School Building and Site, GO, 5% due 5/01/2014 (d)(h)    2,715 
 
 
1,325    Eaton Rapids, Michigan, Public Schools, School Building and Site, GO, 5.25% due 5/01/2020 (d)    1,456 
 
 
1,675    Eaton Rapids, Michigan, Public Schools, School Building and Site, GO, 5.25% due 5/01/2021 (d)    1,841 
 
 
1,700    Eaton Rapids, Michigan, Public Schools, School Building and Site, GO, 5% due 5/01/2026 (d)    1,771 
 
 
1,175    Eaton Rapids, Michigan, Public Schools, School Building and Site, GO, 5% due 5/01/2029 (d)    1,217 
 
 
615    Flint, Michigan, Hospital Building Authority, Revenue Refunding Bonds (Hurley Medical Center),     
    Series A, 5.375% due 7/01/2020 (a)    588 
 
 
1,375    Flint, Michigan, Hospital Building Authority, Revenue Refunding Bonds (Hurley Medical Center),     
    Series A, 6% due 7/01/2020 (a)    1,382 
 
 
2,200    Fowlerville, Michigan, Community Schools, School District, GO, 5% due 5/01/2030 (c)    2,254 
 
 
1,000    Frankenmuth, Michigan, School District, GO, 5.75% due 5/01/2010 (c)(h)    1,075 
 
 
2,940    Gibraltar, Michigan, School District, GO (School Building and Site), 5% due 5/01/2014 (c)(h)    3,292 
 
 
710    Gibraltar, Michigan, School District, GO (School Building and Site), 5% due 5/01/2028 (c)    729 
 
 
1,100    Grand Blanc, Michigan, Community Schools, GO, 5.625% due 5/01/2020 (c)    1,195 
 
 
1,035    Grand Rapids, Michigan, Building Authority Revenue Bonds, Series A, 5.50% due 10/01/2012 (b)(h)    1,163 
 
 
665    Grand Rapids, Michigan, Building Authority Revenue Bonds, Series A, 5.50% due 10/01/2019 (b)    725 
 
 
900    Grand Rapids, Michigan, Building Authority Revenue Bonds, Series A, 5.50% due 10/01/2020 (b)    981 
 
 
2,070    Grand Valley, Michigan, State University Revenue Bonds, 5.50% due 2/01/2018 (c)    2,332 
 
 
11,250    Greater Detroit Resource Recovery Authority, Michigan, Revenue Refunding Bonds, Series A, 6.25% due     
    12/13/2008 (b)    11,641 
 
 
5,625    Gull Lake, Michigan, Community School District, School Building and Site, GO, 5%     
    due 5/01/2014 (d)(h)    6,298 
 
 
4,345    Harper Woods, Michigan, City School District, School Building and Site, GO, Refunding, 5%     
    due 5/01/2014 (c)(h)    4,865 
 
 
430    Harper Woods, Michigan, City School District, School Building and Site, GO, Refunding, 5%     
    due 5/01/2034 (c)    439 
 
 
9,325    Hartland, Michigan, Consolidated School District, GO, 6% due 5/01/2010 (c)(h)    10,071 
 
 
3,990    Hudsonville, Michigan, Public Schools, School Building and Site, GO, 5% due 5/01/2029 (d)    4,133 
 
 
1,575    Jenison, Michigan, Public Schools, School Building and Site, GO, 5.50% due 5/01/2019 (c)    1,713 
 
 
2,500    Kent County, Michigan, Airport Revenue Bonds (Gerald R. Ford International Airport), 5%     
    due 1/01/2037    2,580 
 
 
3,365    Kent, Michigan, Hospital Finance Authority, Hospital Revenue Refunding Bonds (Butterworth Hospital),     
    Series A, 7.25% due 1/15/2013 (f)    3,733 
 
 
3,000    Kent, Michigan, Hospital Finance Authority Revenue Bonds (Spectrum Health), Series A, 5.50%     
    due 7/15/2011 (f)(h)    3,309 
 
 

2

BlackRock MuniYield Michigan Insured Fund, Inc.     
Schedule of Investments as of January 31, 2008 (Unaudited)    (in Thousands) 
 
Face         
Amount    Municipal Bonds    Value 
 
 
$ 1,510    Lansing, Michigan, Building Authority, GO, Series A, 5.375% due 6/01/2013 (f)(h)    $ 1,707 
 
 
2,015    Lapeer, Michigan, Community Schools, School Building and Site, GO, 5% due 5/01/2037 (d)    2,097 
 
 
1,875    Michigan Higher Education Facilities Authority, Limited Obligation Revenue Bonds (Hillsdale College     
    Project), 5% due 3/01/2035    1,881 
 
 
2,250    Michigan Higher Education Facilities Authority, Limited Obligation Revenue Refunding Bonds (Hope     
    College), Series A, 5.90% due 4/01/2032    2,291 
 
 
1,235    Michigan Higher Education Facilities Authority, Revenue Refunding Bonds (College for Creative     
    Studies), 5.85% due 12/01/2022    1,289 
 
 
1,145    Michigan Higher Education Facilities Authority, Revenue Refunding Bonds (College for Creative     
    Studies), 5.90% due 12/01/2027    1,183 
 
 
2,500    Michigan Higher Education Student Loan Authority, Student Loan Revenue Bonds, AMT, Series XVII-B,     
    5.40% due 6/01/2018 (b)    2,529 
 
 
3,000    Michigan Higher Education Student Loan Authority, Student Loan Revenue Bonds, AMT, Series XVII-Q,     
    5% due 3/01/2031 (b)    2,988 
 
 
1,065    Michigan Municipal Bond Authority Revenue Bonds (Local Government Loan Program), Group A,     
    5.50% due 11/01/2020 (b)    1,127 
 
 
2,500    Michigan State Building Authority, Revenue Refunding Bonds (Facilities Program), Series I, 5.50%     
    due 10/15/2018 (f)    2,701 
 
 
3,500    Michigan State Building Authority, Revenue Refunding Bonds (Facilities Program), Series II, 5%     
    due 10/15/2029 (f)    3,576 
 
 
1,250    Michigan State Building Authority, Revenue Refunding Bonds, RIB, Series 517X, 8.57%     
    due 10/15/2010 (d)(l)    1,487 
 
 
3,000    Michigan State, COP, 5.50% due 6/01/2010 (b)(h)    3,197 
 
 
3,000    Michigan State, COP, 5.40% due 6/01/2022 (b)(g)(j)    1,614 
 
 
3,740    Michigan State, Comprehensive Transportation Revenue Refunding Bonds, 5% due 5/15/2026 (d)    3,939 
 
 
1,000    Michigan State, HDA, Limited Obligation M/F Housing Revenue Bonds (Deaconess Towers     
    Apartments), AMT, 5.25% due 2/20/2048 (e)    979 
 
 
4,050    Michigan State, HDA, Limited Obligation M/F Housing Revenue Bonds (Williams Pavilion Apartments),     
    AMT, 4.75% due 4/20/2037 (e)    3,772 
 
 
835    Michigan State, HDA, Rental Housing Revenue Bonds, AMT, Series A, 5.30% due 10/01/2037 (f)    831 
 
 
3,310    Michigan State, HDA, Rental Housing Revenue Bonds, AMT, Series D, 5% due 4/01/2026 (d)    3,306 
 
 
2,530    Michigan State Hospital Finance Authority, Hospital Revenue Bonds (Mid-Michigan Obligation Group),     
    Series A, 5.50% due 4/15/2018 (b)    2,674 
 
 
2,200    Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds (Crittenton Hospital),     
    Series A, 5.625% due 3/01/2027    2,271 
 
 
4,375    Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds (Oakwood Obligated     
    Group), Series A, 5% due 7/15/2025    4,408 
 
 

3

BlackRock MuniYield Michigan Insured Fund, Inc.     
Schedule of Investments as of January 31, 2008 (Unaudited)    (in Thousands) 
 
Face         
Amount    Municipal Bonds    Value 
 
 
$ 2,130    Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds (Oakwood Obligated     
    Group), Series A, 5% due 7/15/2037    $ 2,033 
 
 
4,250    Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds (Sparrow Obligated     
    Group), 5% due 11/15/2031    4,226 
 
 
1,000    Michigan State Hospital Finance Authority Revenue Bonds (McLaren Health Care Corporation),     
    Series C, 5% due 8/01/2035    986 
 
 
9,180    Michigan State Hospital Finance Authority Revenue Bonds (Mid-Michigan Obligor Group), Series A, 5%     
    due 4/15/2036    9,056 
 
 
1,500    Michigan State Hospital Finance Authority Revenue Bonds (Trinity Health Credit Group), Series A, 5%     
    due 12/01/2031    1,507 
 
 
2,715    Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Ascension Health Credit),     
    Series A, 5.75% due 11/15/2009 (f)(h)    2,908 
 
 
12,000    Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Ascension Health Credit),     
    Series A, 6.125% due 11/15/2009 (f)(h)    12,931 
 
 
2,500    Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Ascension Health Credit),     
    Series A, 6.25% due 11/15/2009 (f)(h)    2,699 
 
 
6,700    Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Henry Ford Health System),     
    Series A, 5.25% due 11/15/2032    6,728 
 
 
2,200    Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Mercy Health Services),     
    Series X, 5.75% due 8/15/2009 (f)(h)    2,341 
 
 
2,000    Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Mercy Health Services),     
    Series X, 6% due 8/15/2009 (f)(h)    2,119 
 
 
4,930    Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Mercy-Mount Clemens),     
    Series A, 6% due 5/15/2009 (f)(h)    5,220 
 
 
3,000    Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Saint John Hospital),     
    Series A, 6% due 5/15/2013 (b)(g)    3,064 
 
 
3,100    Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Trinity Health Credit Group),     
    Series D, 5% due 8/15/2034    3,105 
 
 
1,000    Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Trinity Health Credit), Series C,     
    5.375% due 12/01/2023    1,043 
 
 
5,255    Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Trinity Health Credit), Series C,     
    5.375% due 12/01/2030    5,388 
 
 
6,400    Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Trinity Health), Series A, 6% due     
    12/01/2027 (b)    6,839 
 
 
10,250    Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit Edison Company     
    Pollution Control Project), AMT, Series A, 5.55% due 9/01/2029 (f)    10,474 
 
 
6,000    Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit Edison Company     
    Pollution Control Project), Series AA, 6.95% due 5/01/2011 (c)    6,767 
 
 
2,175    Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Dow Chemical Company     
    Project), AMT, 5.50% due 12/01/2028    2,208 
 
 

4

BlackRock MuniYield Michigan Insured Fund, Inc.     
Schedule of Investments as of January 31, 2008 (Unaudited)    (in Thousands) 
 
Face         
Amount    Municipal Bonds    Value 
 
 
$ 15,000    Monroe County, Michigan, Economic Development Corporation, Limited Obligation Revenue Refunding     
    Bonds (Detroit Edison Co. Project), Series AA, 6.95% due 9/01/2022 (c)    $ 19,530 
 
 
1,000    Montrose Township, Michigan, School District, GO, 6.20% due 5/01/2017 (f)    1,209 
 
 
1,830    Muskegon Heights, Michigan, Water System Revenue Bonds, Series A, 5.625% due 11/01/2010 (f)(h)    1,988 
 
 
235    Northview, Michigan, Public School District, GO, Refunding, 5.80% due 5/01/2021 (f)    237 
 
 
1,100    Norway Vulcan, Michigan, Area Schools, GO, 5.90% due 5/01/2009 (c)(h)    1,152 
 
 
500    Oak Park, Michigan, Street Improvement, GO, 5% due 5/01/2030 (f)    519 
 
 
5,320    Orchard View, Michigan, Schools, School Building and Site, GO, 5% due 11/01/2013 (f)(h)    5,953 
 
 
1,370    Pennfield, Michigan, School District, School Building and Site, GO, 5% due 5/01/2014 (c)(h)    1,534 
 
 
1,000    Plainwell, Michigan, Community Schools, School District, School Building and Site, GO, 5.50%     
    due 11/01/2012 (d)(h)    1,127 
 
 
3,905    Plymouth-Canton, Michigan, Community School District, GO, 5% due 5/01/2029 (c)    4,008 
 
 
700    Pontiac, Michigan, Tax Increment Finance Authority, Revenue Refunding Bonds (Development Area     
    Number 2), 5.625% due 6/01/2022 (a)    704 
 
 
1,425    Reed, Michigan, City Public Schools, School Building and Site, GO, 5% due 5/01/2014 (d)(h)    1,595 
 
 
1,500    Roseville, Michigan, School District, School Building and Site, GO, Refunding, 5% due 5/01/2031 (d)    1,564 
 
 
2,500    Saginaw, Michigan, Hospital Finance Authority, Revenue Refunding Bonds (Covenant Medical Center),     
    Series E, 5.625% due 7/01/2013 (f)    2,621 
 
 
2,100    Saginaw Valley State University, Michigan, General Revenue Refunding Bonds, 5% due 7/01/2024 (c)    2,167 
 
 
1,445    Saginaw Valley State University, Michigan, General Revenue Refunding Bonds, 5% due 7/01/2034 (c)    1,462 
 
 
17,800    Saint Clair County, Michigan, Economic Revenue Refunding Bonds (Detroit Edison Co. Project),     
    Series AA, 6.40% due 8/01/2024 (b)    18,405 
 
 
1,300    Southfield, Michigan, Library Building Authority, GO, 5.50% due 5/01/2010 (f)(h)    1,390 
 
 
3,500    Southfield, Michigan, Public Schools, School Building and Site, GO, Series A, 5%     
    due 5/01/2014 (d)(h)    3,919 
 
 
2,900    Southfield, Michigan, Public Schools, School Building and Site, GO, Series A, 5.25%     
    due 5/01/2014 (d)(h)    3,288 
 
 
1,325    Sparta, Michigan, Area Schools, School Building and Site, GO, 5% due 5/01/2014 (c)(h)    1,484 
 
 
2,500    Thornapple Kellogg School District, Michigan, GO, Refunding, 5% due 5/01/2032 (f)    2,601 
 
 
1,100    Waverly, Michigan, Community School, GO, 5.50% due 5/01/2010 (c)(h)    1,176 
 
 
10,660    Wayne Charter County, Michigan, Airport Revenue Bonds (Detroit Metropolitan Wayne County), AMT,     
    Series A, 5.375% due 12/01/2015 (f)    10,880 
 
 
1,750    Wayne Charter County, Michigan, Detroit Metropolitan Airport, GO, Airport Hotel, Series A, 5%     
    due 12/01/2030 (f)    1,784 
 
 
9,160    Wayne County, Michigan, Airport Authority Revenue Bonds (Detroit Metropolitan Wayne County     
    Airport), AMT, 5% due 12/01/2034 (f)    9,082 
 
 
1,710    West Bloomfield, Michigan, School District, GO, Refunding, 5.50% due 5/01/2017 (c)    1,874 
 
 

5

BlackRock MuniYield Michigan Insured Fund, Inc.     
Schedule of Investments as of January 31, 2008 (Unaudited)    (in Thousands) 
 
    Face         
    Amount    Municipal Bonds    Value 
 
 
 
$ 1,225    West Bloomfield, Michigan, School District, GO, Refunding, 5.50% due 5/01/2018 (c)    $ 1,333 
 
 
    2,405    West Branch-Rose City, Michigan, Area School District, GO, 5.50% due 5/01/2009 (c)(h)    2,506 
 
 
 
    1,600    Zeeland, Michigan, Public Schools, School Building and Site, GO, 5% due 5/01/2029 (f)    1,651 
 
 
 
Puerto Rico - 5.7%    8,300    Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue Refunding     
        Bonds, Series N, 5.25% due 7/01/2039 (c)    8,480 
 
 
 
    2    Puerto Rico Electric Power Authority, Power Revenue Bonds, Trust Receipts, Class R, Series 16 HH,     
        8.363% due 7/01/2013 (d)(l)    3 
 
 
 
    2,790    Puerto Rico Municipal Finance Agency Revenue Bonds, Series A, 5% due 8/01/2027 (d)    2,870 
 
 
 
    12,500    Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Refunding Bonds, Series A, 5.20%     
        due 8/01/2043 (f)(j)    1,880 
 
 
 
    20,000    Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Refunding Bonds, Series A, 4.99% due     
        8/01/2046 (f)(j)    2,543 
 
 
 
        Total Municipal Bonds (Cost - $390,269) - 148.1%    409,289 
 
 
 
        Municipal Bonds Transferred to Tender Option Bond Trusts (m)     
 
 
 
Michigan - 15.6%    6,700    Detroit, Michigan, Water Supply System, Senior Lien Revenue Bonds, Series A, 5.75%     
        due 7/01/2011 (c)(h)    7,461 
 
 
 
    4,750    Michigan State Building Authority, Revenue Refunding Bonds (Facilities Program), Series I, 5.50%     
        due 10/15/2010 (d)    5,202 
 
 
 
    15,030    Michigan State Building Authority, Revenue Refunding Bonds (Facilities Program), Series I, 5.50%     
        due 10/15/2011 (d)    16,459 
 
 
 
    7,525    Wayne County, Michigan, Airport Authority Revenue Bonds (Detroit Metropolitan Wayne County     
        Airport), AMT, 5.25% due 12/01/2025 (f)    7,624 
 
 
 
    6,295    Wayne County, Michigan, Airport Authority Revenue Bonds (Detroit Metropolitan Wayne County     
        Airport), AMT, 5.25% due 12/01/2026 (f)    6,378 
 
 
 
Puerto Rico - 1.0%    2,535    Puerto Rico Electric Power Authority, Power Revenue Bonds, Series HH, 5.75%     
        due 7/01/2010 (d)    2,758 
 
 
 
        Total Municipal Bonds Transferred to Tender Option Bond Trusts (Cost - $46,048) - 16.6%    45,882 
 
 
 
    Shares         
    Held    Short-Term Securities     
 
 
 
    3,239    CMA Michigan Municipal Money Fund, 1.97% (i)(k)    3,239 
 
 
 
        Total Short-Term Securities (Cost - $3,239) - 1.2%    3,239 
 
 
 
        Total Investments (Cost - $439,556*) - 165.9%    458,410 
        Other Assets Less Liabilities - 1.6%    4,482 
        Liability for Trust Certificates, Including Interest Expense Payable - (7.8%)    (21,566) 
        Preferred Stock, at Redemption Value - (59.7%)    (165,064) 
           
        Net Assets Applicable to Common Stock - 100.0%    $ 276,262 
           

6

BlackRock MuniYield Michigan Insured Fund, Inc.     
Schedule of Investments as of January 31, 2008 (Unaudited)    (in Thousands) 
 
   *    The cost and unrealized appreciation (depreciation) of investments as of January 31, 2008,     
    as computed for federal income tax purposes, were as follows:     
    Aggregate cost    $ 418,127     
       
   
    Gross unrealized appreciation    $ 23,275     
    Gross unrealized depreciation    (4,410)     
    Net unrealized appreciation    $ 18,865     
       
   

(a)      ACA Insured.
 
(b)      AMBAC Insured.
 
(c)      FGIC Insured.
 
(d)      FSA Insured.
 
(e)      GNMA Collateralized.
 
(f)      MBIA Insured.
 
(g)      Escrowed to maturity.
 
(h)      Prerefunded.
 
(i)      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 
 
 
CMA Michigan Municipal         
Money Fund    (683)    $28 
 
 

(j)      Represents a zero coupon bond; the interest rate shown reflects the effective yield at the time of purchase.
 
(k)      Represents the current yield as of January 31, 2008.
 
(l)      The rate disclosed is that currently in effect. This rate changes periodically and inversely based upon prevailing market rates.
 
(m)      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.
 

7

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 MuniYield Michigan Insured Fund, Inc.

By: /s/ Donald C. Burke

  Donald C. Burke
Chief Executive Officer of
BlackRock MuniYield Michigan Insured Fund, Inc.

  Date: March 24, 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 MuniYield Michigan Insured Fund, Inc.

  Date: March 24, 2008

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

Date: March 24, 2008