BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.

Regulatory Filings • Dec 23, 2009

N-Q 1 i00485_mue-nq.htm

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: Anne F. Ackerley, Chief Executive Officer, BlackRock MuniHoldings Insured Fund II, Inc., 55 East 52 nd Street, New York, NY 10055.

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

Date of fiscal year end: 07/31/2010

Date of reporting period: 10/31/2009

Item 1 – Schedule of Investments

insert

| BlackRock MuniHoldings Insured Fund
II, Inc. (MUE) | |
| --- | --- |
| Schedule
of Investments October 31, 2009 (Unaudited) | (Percentages shown are based on Net Assets) |

| State | Municipal
Bonds | Par (000) | Value |
| --- | --- | --- | --- |
| Alabama -
2.9% | Birmingham Alabama Special
Care Facilities Financing Authority, RB, Health Care Facilities, Children’s Hospital (AGC), 6.00%, 6/01/39 | $ 5,225 | $ 5,543,620 |
| | County of Jefferson
Alabama, RB, Series A, 5.50%, 1/01/22 | 3,580 | 2,980,708 |
| | | | 8,524,328 |
| Alaska -
0.6% | City of Anchorage Alaska,
Refunding RB (AMBAC), 6.00%, 9/01/24 | 1,630 | 1,652,086 |
| Arkansas
- 4.2% | Arkansas Development
Finance Authority, Refunding RB, Series C (MBIA), 5.35%, 12/01/35 | 12,165 | 12,250,277 |
| California
- 14.9% | City of Vista California,
COP, Community Projects (MBIA), 5.00%, 5/01/37 | 5,400 | 4,990,734 |
| | County of Sacramento
California, RB, Senior Series A (AGC), 5.50%, 7/01/41 | 3,500 | 3,670,065 |
| | Dixon Unified School
District, California, GO, Election of 2002 (FSA), 5.20%, 8/01/44 | 2,405 | 2,393,288 |
| | Modesto Schools
Infrastructure Financing Agency, Special Tax (AMBAC), 5.50%, 9/01/36 | 4,240 | 3,748,372 |
| | Oceanside Unified School
District, California, GO, Series A (AGC), 5.25%, 8/01/33 | 3,175 | 3,232,722 |
| | Port of Oakland, RB,
Series K, AMT (MBIA), 5.75%, 5/01/10 (a) | 25 | 25,581 |
| | Port of Oakland, RB,
Series K, AMT (MBIA), 5.75%, 11/01/21 | 2,975 | 2,977,350 |
| | Port of Oakland, RB,
Series L, AMT (MBIA), 5.38%, 11/01/27 | 5,000 | 4,906,750 |
| | Roseville Joint Union High
School District, California, GO, Election of 2004, Series A (MBIA), 5.00%, 8/01/29 | 2,985 | 3,056,998 |
| | Sacramento City Financing
Authority, California, RB, Capital Improvement (AMBAC), 5.00%, 12/01/27 | 150 | 150,764 |
| | San Francisco City &
County Airports Commission, RB, Special Facilities Lease, SFO Fuel, Series A, AMT (FSA), 6.10%, 1/01/20 | 1,250 | 1,252,388 |
| | State of California, GO,
Veterans, Series BZ, AMT (MBIA), 5.35%, 12/01/21 | 9,350 | 9,231,722 |
| | Stockton Public Financing
Authority, California, RB, Redevelopment Projects, Series A (Radian), 5.25%, 9/01/34 | 2,930 | 2,478,165 |
| | Tustin Unified School
District, California, Special Tax, Senior Lien, Community Facilities District 97-1, Series A (FSA), 5.00%, 9/01/38 | 1,620 | 1,571,756 |
| | | | 43,686,655 |

Portfolio Abbreviations

| To simplify the listings
of portfolio holdings in the Schedule of Investments, the names and
descriptions of many of the securities have been abbreviated according to the
following list. | |
| --- | --- |
| AGC | Assured Guaranty Corp. |
| AMBAC | American Municipal Bond
Assurance Corp. |
| AMT | Alternative Minimum Tax
(subject to) |
| CAB | Capital Appreciation Bonds |
| COP | Certificates of
Participation |
| EDA | Economic Development
Authority |
| EDC | Economic Development Corp. |
| FGIC | Financial Guaranty
Insurance Co. |
| FSA | Financial Security
Assurance Inc. |
| GNMA | Government National
Mortgage Association |
| GO | General Obligation Bonds |
| HFA | Housing Finance Agency |
| ISD | Independent School
District |
| MBIA | Municipal Bond Investors
Assurance (National Public Finance Guaranty Corp.) |
| RB | Revenue Bonds |
| S/F | Single-Family |
| VRDN | Variable Rate Demand Notes |

1

| BlackRock MuniHoldings Insured Fund
II, Inc. (MUE) | |
| --- | --- |
| Schedule
of Investments October 31, 2009 (Unaudited) | (Percentages shown are based on Net Assets) |

| State | Municipal
Bonds | Par (000) | Value |
| --- | --- | --- | --- |
| Colorado
- 1.3% | Colorado Health Facilities
Authority, RB, Hospital, NCMC Inc. Project, Series B (FSA), 6.00%, 5/15/26 | $ 3,300 | $ 3,618,747 |
| | Colorado Housing &
Finance Authority, Colorado, RB, S/F Program, Senior Series A-2, AMT, 7.50%, 4/01/31 | 175 | 187,210 |
| | | | 3,805,957 |
| District
of Columbia - 0.8% | District of Columbia, RB,
Deed Tax, Housing Production Trust Fund, Series A (MBIA), 5.00%, 6/01/32 | 2,500 | 2,453,425 |
| Florida -
22.3% | City of Miami Florida, RB,
Miami Revenues (MBIA), 5.00%, 1/01/37 | 2,900 | 2,824,136 |
| | City of Orlando Florida,
RB, Senior, 6th Cent Contract Payments, Series A (AGC), 5.25%, 11/01/38 | 4,000 | 4,015,560 |
| | County of Miami-Dade
Florida, RB, CAB, Sub-Series A (MBIA), 5.24%, 10/01/37 (b) | 3,670 | 538,573 |
| | County of Miami-Dade
Florida, RB, Miami International Airport, Series A, AMT (FSA), 5.25%, 10/01/41 | 13,800 | 13,406,286 |
| | County of Miami-Dade
Florida, RB, Miami International Airport, Series A, AMT (FSA), 5.50%, 10/01/41 | 6,700 | 6,728,274 |
| | County of Miami-Dade
Florida, RB, Series A, AMT (FSA), 5.00%, 10/01/33 | 6,730 | 6,336,093 |
| | County of Pasco Florida,
RB, Half-Cent Sales Tax (AMBAC), 5.13%, 12/01/28 | 6,300 | 5,916,393 |
| | County of Saint John’s
Florida, RB, CAB (AMBAC), 5.36%, 6/01/31 (b) | 5,065 | 1,461,962 |
| | Jacksonville Health
Facilities Authority, RB, Baptist Medical Center (FSA), 5.00%, 8/15/37 | 7,740 | 7,513,218 |
| | Jacksonville Port
Authority, RB, AMT (AGC), 6.00%, 11/01/38 | 3,625 | 3,682,529 |
| | Orange County School
Board, COP, Series A (AGC), 5.50%, 8/01/34 | 12,375 | 12,882,870 |
| | | | 65,305,894 |
| Georgia -
1.7% | Metropolitan Atlanta Rapid
Transit Authority, Refunding RB, Third Indenture, Series B (FSA), 5.00%, 7/01/34 | 4,830 | 5,013,443 |
| Idaho -
0.1% | Idaho Housing &
Finance Association, RB, S/F Mortgage, Series E, AMT, 6.00%, 1/01/32 | 320 | 328,848 |
| Illinois
- 4.1% | Chicago Board of
Education, Illinois, GO, Chicago School Reform Board, Series A (MBIA), 5.50%, 12/01/26 | 2,080 | 2,276,435 |
| | Chicago Transit Authority,
RB, Federal Transit Administration Section 5309, Series A (AGC), 6.00%, 6/01/26 | 3,400 | 3,858,184 |
| | City of Chicago Illinois,
Refunding RB, General Airport Third Lien, Series A, AMT (MBIA), 5.75%, 1/01/19 | 3,125 | 3,187,812 |
| | City of Chicago Illinois,
Refunding RB, Second Lien (MBIA), 5.50%, 1/01/30 | 2,270 | 2,449,171 |
| | Lake Cook-Dane &
McHenry Counties Community Unit School District 220, Illinois, GO (MBIA), 6.00%, 12/01/20 | 125 | 130,674 |
| | | | 11,902,276 |

2

| BlackRock MuniHoldings Insured Fund
II, Inc. (MUE) | |
| --- | --- |
| Schedule
of Investments October 31, 2009 (Unaudited) | (Percentages shown are based on Net Assets) |

| State | Municipal
Bonds | Par (000) | Value |
| --- | --- | --- | --- |
| Indiana -
3.6% | Indiana Municipal Power
Agency, Indiana, RB, Series A (MBIA), 5.00%, 1/01/42 | $ 8,000 | $ 7,898,560 |
| | Indianapolis Local Public
Improvement Bond Bank, RB, Waterworks Project, Series A (AGC), 5.50%, 1/01/38 | 2,370 | 2,535,260 |
| | | | 10,433,820 |
| Iowa -
1.0% | Iowa Finance Authority,
RB, Iowa Health System (AGC), 5.25%, 2/15/29 | 2,915 | 2,964,059 |
| Kansas -
1.9% | Kansas Development Finance
Authority, RB, Sisters of Charity, Series J, 6.13%, 12/01/20 | 3,510 | 3,571,530 |
| | Sedgwick & Shawnee
Counties, Kansas, RB, Mortgage, Series A-2, AMT (GNMA), 6.20%, 12/01/33 | 2,015 | 2,043,331 |
| | | | 5,614,861 |
| Kentucky
- 1.0% | Kentucky Economic
Development Finance Authority, Kentucky, RB, Louisville Arena, Sub-Series A-1 (AGC), 6.00%, 12/01/38 | 1,150 | 1,218,724 |
| | Kentucky State Property
& Buildings Commission, Kentucky, Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/29 | 1,525 | 1,636,935 |
| | | | 2,855,659 |
| Louisiana
- 1.3% | Louisiana State Citizens
Property Insurance Corp., RB, Series C-3 (AGC), 6.13%, 6/01/25 | 3,550 | 3,945,967 |
| Michigan
- 15.0% | City of Detroit Michigan,
RB, Second Lien, Series B (MBIA), 5.50%, 7/01/29 | 4,170 | 4,183,469 |
| | City of Detroit Michigan,
RB, Second Lien, Series E (FGIC), 5.75%, 7/01/31 | 5,060 | 5,438,134 |
| | City of Detroit Michigan,
RB, Senior Lien, Series B (FSA), 7.50%, 7/01/33 | 1,190 | 1,469,412 |
| | City of Detroit Michigan,
Refunding RB, Second Lien, Series C (FGIC), 5.75%, 7/01/27 | 2,600 | 2,821,286 |
| | City of Detroit Michigan,
Refunding RB, Senior Lien, Series B (MBIA), 5.25%, 7/01/22 | 9,235 | 9,280,621 |
| | City of Detroit Michigan,
Refunding RB, Senior Lien, Series C-1 (FSA), 7.00%, 7/01/27 | 4,180 | 5,098,221 |
| | City of Detroit Michigan,
Refunding RB, Senior Lien, Series C-2 (FGIC), 5.25%, 7/01/29 | 1,860 | 1,936,055 |
| | Michigan State Building
Authority, Refunding RB, Facilities Program, Series I (AGC), 5.25%, 10/15/24 | 1,440 | 1,519,258 |
| | Michigan State Building
Authority, Refunding RB, Facilities Program, Series I (AGC), 5.25%, 10/15/25 | 750 | 786,263 |
| | Michigan Strategic Fund,
Refunding RB, Detroit Edison Co. Project, Series A, AMT (Syncora), 5.50%, 6/01/30 | 2,000 | 1,873,600 |
| | Michigan Strategic Fund,
Refunding RB, Detroit Edison Pollution, Series C, AMT (Syncora), 5.65%, 9/01/29 | 2,935 | 2,869,726 |

3

| BlackRock MuniHoldings Insured Fund
II, Inc. (MUE) | |
| --- | --- |
| Schedule
of Investments October 31, 2009 (Unaudited) | (Percentages shown are based on Net Assets) |

| State | Municipal
Bonds | Par (000) | Value |
| --- | --- | --- | --- |
| | Royal Oak Hospital Finance
Authority, Michigan, RB, William Beaumont Hospital, 8.25%, 9/01/39 | $ 3,115 | $ 3,617,730 |
| | Saint Clair County, EDC,
Michigan, Refunding RB, Detroit Edison, Series AA (AMBAC), 6.40%, 8/01/24 | 3,000 | 3,039,900 |
| | | | 43,933,675 |
| Minnesota
- 1.5% | City of Minneapolis
Minnesota, RB, Fairview Health Services, Series B (AGC), 6.50%, 11/15/38 | 1,975 | 2,223,514 |
| | Sauk Rapids ISD No. 47,
Minnesota, GO, Series A (MBIA), 5.63%, 2/01/18 | 2,185 | 2,303,493 |
| | | | 4,527,007 |
| Nevada -
0.4% | County of Clark, Nevada,
RB, Jet Aviation Fuel Tax, Series C, AMT (AMBAC), 5.38%, 7/01/20 | 1,200 | 1,150,536 |
| | Nevada Housing Division,
Nevada, RB, S/F Mortgage, Mezzanine, Series A-2, AMT (MBIA), 6.30%, 4/01/22 | 95 | 96,361 |
| | | | 1,246,897 |
| New
Jersey - 7.5% | New Jersey EDA, RB, Motor
Vehicle Surcharge, Series A (MBIA), 5.25%, 7/01/33 | 11,000 | 11,098,780 |
| | New Jersey Health Care
Facilities Financing Authority, RB, Virtua Health (AGC), 5.50%, 7/01/38 | 3,400 | 3,510,398 |
| | New Jersey State Housing
& Mortgage Finance Agency, RB, S/F Housing, Series CC, 5.25%, 10/01/29 | 3,945 | 4,056,999 |
| | New Jersey Transportation
Trust Fund Authority, New Jersey, RB, Transportation System, Series A (AGC), 5.63%, 12/15/28 | 2,930 | 3,281,366 |
| | | | 21,947,543 |
| New York
- 1.5% | New York City Transitional
Finance Authority, RB, Fiscal 2009, Series S-3, 5.25%, 1/15/39 | 2,300 | 2,388,274 |
| | Tobacco Settlement
Financing Corp., New York, RB, Asset Backed, Series A-3 (AMBAC), 5.25%, 6/01/21 | 2,000 | 2,086,140 |
| | | | 4,474,414 |
| North
Carolina - 0.4% | North Carolina HFA, North
Carolina, RB, Home Ownership, Series 14, Series A, AMT (AMBAC), 5.35%, 1/01/22 | 1,235 | 1,246,671 |
| Ohio -
1.0% | Aurora City School
District, COP (MBIA), 6.10%, 12/01/09 (a) | 1,745 | 1,771,192 |
| | Kent State University
Revenues, RB, General Receipts (AMBAC), 6.00%, 5/01/10 (a) | 1,000 | 1,036,690 |
| | | | 2,807,882 |
| Oklahoma
- 1.0% | Claremore Public Works
Authority, Oklahoma, RB, Series A (FSA), 5.25%, 6/01/14 (a) | 2,385 | 2,763,810 |
| Pennsylvania
- 1.0% | Pennsylvania Turnpike
Commission, RB, Sub-Series B (FSA), 5.25%, 6/01/39 | 3,000 | 2,984,670 |
| Puerto
Rico - 1.3% | Puerto Rico Sales Tax
Financing Corp., RB, First Sub-Series A, 6.38%, 8/01/39 | 3,500 | 3,775,030 |

4

| BlackRock MuniHoldings Insured Fund
II, Inc. (MUE) | |
| --- | --- |
| Schedule
of Investments October 31, 2009 (Unaudited) | (Percentages shown are based on Net Assets) |

| State | Municipal
Bonds | Par (000) | Value |
| --- | --- | --- | --- |
| Rhode
Island - 2.0% | Providence Redevelopment
Agency, Rhode Island, RB, Public Safety & Municipal Buildings, Series A (AMBAC), 5.75%, 4/01/10 (a) | $ 5,555 | $ 5,728,594 |
| South
Carolina - 5.6% | South Carolina State
Housing Finance & Development Authority, South Carolina, RB, Series A-2, AMT (FSA), 6.35%, 7/01/19 | 1,110 | 1,126,683 |
| | South Carolina State
Public Service Authority, RB, Series A (AMBAC), 5.00%, 1/01/42 | 15,000 | 15,115,800 |
| | | | 16,242,483 |
| Texas -
17.8% | City of Dallas Texas,
Refunding RB & Improvement (AGC), 5.25%, 8/15/38 | 2,100 | 2,143,365 |
| | City of El Paso Texas,
Refunding RB & Improvement, Series A (FSA), 6.00%, 3/01/15 | 115 | 127,535 |
| | City of El Paso Texas,
Refunding RB & Improvement, Series A (FSA), 6.00%, 3/01/16 | 170 | 188,530 |
| | City of El Paso Texas,
Refunding RB & Improvement, Series A (FSA), 6.00%, 3/01/17 | 180 | 199,620 |
| | City of Houston Texas,
Refunding RB, First Lien, Series A (AGC), 6.00%, 11/15/35 | 6,700 | 7,616,291 |
| | Dallas-Fort Worth
International Airport Facilities Improvement Corp., Refunding RB & Improvement, Series A, AMT (MBIA), 5.88%, 11/01/18 | 2,150 | 2,222,369 |
| | Dallas-Fort Worth
International Airport Facilities Improvement Corp., Refunding RB & Improvement, Series A, AMT (MBIA), 5.88%, 11/01/19 | 2,390 | 2,466,026 |
| | Harris County Health
Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B, 7.25%, 12/01/35 | 1,000 | 1,117,700 |
| | Lower Colorado River Authority,
Refunding RB (AGC), 5.50%, 5/15/36 | 2,935 | 3,061,058 |
| | Lubbock Copper Texas ISD,
GO, School Building (AGC), 5.75%, 2/15/42 | 1,250 | 1,323,563 |
| | North Texas Tollway
Authority, Refunding RB, System, First Tier (MBIA), 5.75%, 1/01/40 | 14,750 | 14,882,602 |
| | North Texas Tollway
Authority, Refunding RB, System, First Tier, Series A (MBIA), 5.63%, 1/01/33 | 10,975 | 11,193,511 |
| | North Texas Tollway
Authority, Refunding RB, System, First Tier, Series B (MBIA), 5.75%, 1/01/40 | 1,000 | 1,008,990 |
| | North Texas Tollway
Authority, Refunding RB, System, First Tier, Series K-2 (AGC), 6.00%, 1/01/38 | 1,000 | 1,083,460 |
| | Tarrant County Cultural
Education Facilities Finance Corp., Refunding RB, Christus Health, Series A (AGC), 6.50%, 7/01/37 | 3,000 | 3,295,080 |
| | | | 51,929,700 |
| Utah -
1.4% | City of Riverton Utah, RB,
IHC Health Services Inc., 5.00%, 8/15/41 | 4,085 | 3,958,283 |
| Virginia
- 0.9% | Virginia Public School
Authority, Virginia, RB, School Financing, 6.50%, 12/01/35 | 2,195 | 2,522,867 |

5

| BlackRock MuniHoldings Insured Fund
II, Inc. (MUE) | |
| --- | --- |
| Schedule
of Investments October 31, 2009 (Unaudited) | (Percentages shown are based on Net Assets) |

| State | Municipal
Bonds | Par (000) | Value |
| --- | --- | --- | --- |
| Washington
- 1.8% | Chelan County Public
Utility District No. 1, RB, Chelan Hydro System, Series A, AMT (AMBAC), 5.45%, 7/01/37 | $ 3,840 | $ 3,686,208 |
| | County of Lewis
Washington, GO, Refunding (AMBAC), 5.75%, 12/01/09 (a) | 1,640 | 1,645,986 |
| | | | 5,332,194 |
| | Total
Municipal Bonds - 121.8% | | 356,159,275 |
| | Municipal
Bonds Transferred to Tender Option Bond Trusts (c) | | |
| California
- 3.7% | City of San Jose
California, GO, Libraries, Parks, Public Safety Project (MBIA), 5.00%, 9/01/30 | 3,805 | 3,882,301 |
| | San Diego Community
College District, California, GO, Election of 2002 (FSA), 5.00%, 5/01/30 | 1,486 | 1,524,075 |
| | Sequoia Union High School
District, California, GO, Refunding, Election Series B (FSA), 5.50%, 7/01/35 | 5,189 | 5,442,184 |
| | | | 10,848,560 |
| Colorado
- 3.3% | Colorado Health Facilities
Authority, RB, Catholic Health, Series C3 (FSA), 5.10%, 10/01/41 | 9,410 | 9,506,923 |
| District
of Columbia - 0.7% | District of Columbia Water
& Sewer Authority, RB, Series A, 6.00%, 10/01/35 | 1,700 | 1,900,419 |
| Florida -
8.3% | City of Saint Petersburg,
Florida, Refunding RB (MBIA), 5.00%, 10/01/35 | 6,493 | 6,309,078 |
| | County of Miami-Dade,
Florida, GO, Building Better Communities Program, Series B-1, 6.00%, 7/01/38 | 12,500 | 13,691,875 |
| | Lee County HFA, RB,
Multi-County Program, Series A-2, AMT (GNMA), 6.00%, 9/01/40 | 3,870 | 4,151,891 |
| | | | 24,152,844 |
| Georgia -
2.2% | City of Augusta, Georgia,
RB (FSA), 5.25%, 10/01/34 | 6,290 | 6,509,898 |
| Illinois
- 6.5% | City of Chicago, Illinois,
RB, General Airport Third Lien, Series A, (AMBAC), 5.00%, 1/01/38 | 15,000 | 14,986,350 |
| | City of Chicago, Illinois,
Refunding RB, Second Lien (FSA), 5.25%, 11/01/33 | 3,969 | 4,154,206 |
| | | | 19,140,556 |
| Kentucky
- 0.8% | Kentucky State Property
& Buildings Commission, Kentucky, Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/27 | 2,304 | 2,468,318 |
| Massachusetts
- 3.7% | Massachusetts Bay
Transportation Authority, Refunding RB, Senior Series A, 5.00%, 7/01/35 | 5,535 | 5,546,568 |
| | Massachusetts School
Building Authority, RB, Series A (FSA), 5.00%, 8/15/30 | 4,994 | 5,158,329 |
| | | | 10,704,897 |
| Nevada -
6.8% | Clark County Water
Reclamation District, GO, Limited Tax, 6.00%, 7/01/38 | 10,000 | 10,975,900 |
| | Clark County Water
Reclamation District, GO, Series B, 5.50%, 7/01/29 | 8,247 | 8,962,094 |
| | | | 19,937,994 |

6

| BlackRock MuniHoldings Insured Fund
II, Inc. (MUE) | |
| --- | --- |
| Schedule
of Investments October 31, 2009 (Unaudited) | (Percentages shown are based on Net Assets) |

| State | Municipal
Bonds Transferred to Tender Option Bond Trusts (c) | Par (000) | Value | |
| --- | --- | --- | --- | --- |
| New York
- 2.5% | Sales Tax Asset Receivable
Corp., RB, Series A (AMBAC), 5.25%, 10/15/27 | $ 6,751 | $ 7,387,072 | |
| Washington
- 2.5% | City of Bellevue,
Washington, GO, Refunding (MBIA), 5.50%, 12/01/39 | 6,883 | 7,295,067 | |
| | Total
Municipal Bonds transferred to Tender Option Bond Trusts - 41.0% | | 119,852,548 | |
| | Total
Long-Term Investments (Cost - $470,233,659) - 162.8% | | 476,011,823 | |
| | Short-Term
Securities | | | |
| Florida -
1.1% | Jacksonville Health
Facilities Authority, Refunding RB, VRDN, Baptist, Series C, 0.20%, 11/02/09 (d) | 3,160 | 3,160,000 | |
| | | Shares | | |
| Money
Market Fund - 3.3% | FFI Institutional
Tax-Exempt Fund, 0.23% (e)(f) | 9,589,380 | 9,589,380 | |
| | Total
Short-Term securities (Cost - $12,749,380) - 4.4% | | 12,749,380 | |
| | Total
Investments (Cost - $482,983,039*) - 167.2% | | 488,761,203 | |
| | Liabilities
in Excess of Other Assets - (0.8)% | | (2,201,585 | ) |
| | Liability
for Trust Certificates, Including Interest Expense & Fees Payable - (21.6)% | | (63,185,429 | ) |
| | Preferred
Shares, at Redemption Value - (44.8)% | | (131,009,173 | ) |
| | Net
Assets Applicable to Common Shares - 100.0% | | $ 292,365,016 | |

• The cost and unrealized appreciation (depreciation) of investments as of October 31, 2009, as computed for federal income tax purposes, were as follows:

Aggregate cost	$
Gross unrealized
appreciation	$ 16,407,737
Gross unrealized
depreciation	(6,164,571	)
Net unrealized
appreciation	$ 10,243,166

| (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) | Securities represent bonds
transferred to a tender option bond trust in exchange for which the Fund
acquired the residual interest certificates. These securities serve as
collateral in a financing transaction. |
| (d) | 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. |
| (e) | Investments in companies
considered to be an affiliate of the Fund, for purposes of Section 2(a) of
the Investment Company Act of 1940, were as follows: |

| Affiliate | Net
Activity | | Income |
| --- | --- | --- | --- |
| FFI Institutional
Tax-Exempt Fund | $ (8,003,710 | ) | $ 7,027 |

(f) Represents the current yield as of the report date.

7

| BlackRock MuniHoldings Insured Fund
II, Inc. (MUE) |
| --- |
| Schedule
of Investments October 31, 2009 (Unaudited) |

•
•	Level 1 - price quotations
in active markets/exchanges for identical assets and liabilities
•	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 the Fund’s most recent financial statements as contained in its annual report.

The following table summarizes the inputs used as of October 31, 2009 in determining the fair valuation of the Fund’s investments:

| Valuation
Inputs | Investments in Securities |
| --- | --- |
| | Assets |
| Level 1 - Short-Term
Securities | $ 9,589,380 |
| Level 2 | |
| Long-Term Investments 1 | 476,011,823 |
| Short-Term Securities | 3,160,000 |
| Total Level 2 | 479,171,823 |
| Level 3 | — |
| Total | $ 488,761,203 |

1 See above Schedule of Investments for values in each state or political subdivision.

8

end

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 13(a)-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/ Anne F. Ackerley
	Anne F. Ackerley
	Chief Executive Officer of
	BlackRock MuniHoldings Insured Fund II, Inc.
Date: December 18, 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 Insured Fund II, Inc.
Date: December 18, 2009
By:	/s/ Neal J. Andrews
	Neal J. Andrews
	Chief Financial Officer (principal financial
officer) of
	BlackRock MuniHoldings Insured Fund II, Inc.
Date: December 18, 2009