BLACKROCK MUNIHOLDINGS QUALITY FUND II, INC.

Regulatory Filings • Jun 28, 2010

N-Q 1 i00281_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: 04/30/2010

Item 1 – Schedule of Investments

insert

Schedule of Investments April 30, 2010 (Unaudited)
(Percentages shown are based on Net Assets)

| Municipal
Bonds | Par (000) | Value |
| --- | --- | --- |
| Alabama — 2.9% | | |
| Birmingham Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC), 6.00%, 6/01/39 | $ 5,225 | $ 5,672,469 |
| County of Jefferson Alabama, RB, Series A, 5.50%, 1/01/22 | 3,580 | 3,082,989 |
| | | 8,755,458 |
| Arizona — 0.5% | | |
| State of Arizona, COP, Department of Administration, Series A (AGM): | | |
| 5.25%, 10/01/28 | 1,175 | 1,219,157 |
| 5.00%, 10/01/29 | 305 | 309,105 |
| | | 1,528,262 |
| Arkansas — 4.1% | | |
| Arkansas Development Finance Authority, Refunding RB, FHA Insured Mortgage Loan, Series C (NPFGC), 5.35%, 12/01/35 | 12,165 | 12,284,095 |
| California — 14.8% | | |
| City of Vista California, COP, Refunding, Community Projects (NPFGC), 5.00%, 5/01/37 | 5,400 | 5,051,268 |
| County of Sacramento California, RB, Senior Series A (AGC), 5.50%, 7/01/41 | 3,500 | 3,670,940 |
| Dixon Unified School District California, GO, Election 2002 (AGM), 5.20%, 8/01/44 | 2,405 | 2,418,492 |
| Los Angeles Community College District California, GO, Election of 2001, Series A (NPFGC), 5.00%, 8/01/32 | 5,000 | 5,112,500 |
| Modesto Schools Infrastructure Financing Agency, Special Tax Bonds (AMBAC), 5.50%, 9/01/36 | 4,240 | 3,872,095 |
| Oceanside Unified School District California, GO, Series A (AGC), 5.25%, 8/01/33 | 3,175 | 3,268,980 |
| Port of Oakland, RB, Series K, AMT (NPFGC): | | |
| 5.75%, 5/01/10 (a) | 25 | 25,003 |
| 5.75%, 11/01/21 | 2,975 | 2,976,071 |
| Port of Oakland, Refunding RB, Series M, AMT (NPFGC), 5.38%, 11/01/27 | 2,220 | 2,174,423 |
| Municipal
Bonds | Par (000) | Value |
| California (concluded) | | |
| Roseville Joint Union High School District California, GO, Election of 2004, Series A (NPFGC), 5.00%, 8/01/29 | $ 2,985 | $ 3,043,148 |
| Sacramento City Financing Authority California, RB, Capital Improvement (AMBAC), 5.00%, 12/01/27 | 150 | 150,824 |
| San Francisco City & County Airports Commission, RB, Special Facility Lease, SFO Fuel, Series A, AMT (AGM), 6.10%, 1/01/20 | 1,250 | 1,251,700 |
| State of California, GO, Refunding, Veterans, Series BZ, AMT (NPFGC), 5.35%, 12/01/21 | 9,350 | 9,350,841 |
| Stockton Public Financing Authority California, RB, Redevelopment Projects, Series A (Radian), 5.25%, 9/01/34 | 2,430 | 2,150,040 |
| | | 44,516,325 |
| Colorado — 1.3% | | |
| Colorado Health Facilities Authority, RB, Hospital, NCMC Inc. Project, Series B (AGM), 6.00%, 5/15/26 | 3,300 | 3,664,320 |
| Colorado Housing & Finance Authority, Refunding RB, S/F Program, Senior Series A-2, AMT, 7.50%, 4/01/31 | 155 | 164,627 |
| | | 3,828,947 |
| District of Columbia — 0.8% | | |
| District of Columbia, RB, Deed Tax, Housing Production Trust Fund, Series A (NPFGC), 5.00%, 6/01/32 | 2,500 | 2,508,775 |
| Florida — 22.3% | | |
| City of Miami Florida, RB (NPFGC), 5.00%, 1/01/37 | 2,900 | 2,905,307 |
| City of Orlando Florida, RB, Senior, 6th Cent Contract Payments, Series A (AGC), 5.25%, 11/01/38 | 4,000 | 4,019,680 |
| County of Miami-Dade Florida, RB: | | |
| CAB,
Sub-Series A (NPFGC), 5.24%, 10/01/37 (b) | 3,165 | 508,204 |
| Miami
International Airport, Series A, AMT (AGM), 5.25%, 10/01/41 | 13,800 | 13,631,916 |
| Miami
International Airport, Series A, AMT (AGM), 5.50%, 10/01/41 | 6,700 | 6,776,112 |

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.
AGM	Assured Guaranty Municipal
Corp.
AMBAC	American Municipal Bond
Assurance Corp.
AMT	Alternative Minimum Tax
(subject to)
BHAC	Berkshire Hathaway
Assurance Corp.
CAB	Capital Appreciation Bonds
COP	Certificates of
Participation
EDA	Economic Development
Authority
FHA	Federal Housing
Administration
GNMA	Government National
Mortgage Association
GO	General Obligation Bonds
HFA	Housing Finance Agency
ISD	Independent School District
MRB	Mortgage Revenue Bonds
NPFGC	National Public Finance
Guarantee Corp.
RB	Revenue Bonds
S/F	Single-Family
VRDN	Variable Rate Demand Note

BLACKROCK MUNIHOLDINGS INSURED FUND II, INC. APRIL 30, 2010 1

Schedule of Investments (continued)
(Percentages shown are based on Net Assets)

| Municipal
Bonds | Par (000) | Value |
| --- | --- | --- |
| Florida (concluded) | | |
| County of Miami-Dade Florida, RB (concluded): | | |
| Series
A, AMT (AGM), 5.00%, 10/01/33 | $ 6,730 | $ 6,486,912 |
| Water
& Sewer System (AGM), 5.00%, 10/01/39 | 11,010 | 11,279,195 |
| County of Miami-Dade Florida, Refunding RB, Water & Sewer System (AGM), 5.00%, 10/01/29 | 3,000 | 3,088,320 |
| County of St. John’s Florida, RB, CAB (AMBAC), 5.36%, 6/01/31 (b) | 5,065 | 1,587,016 |
| Jacksonville Port Authority, RB, AMT (AGC), 6.00%, 11/01/38 | 3,625 | 3,716,133 |
| Orange County School Board, COP, Series A (AGC), 5.50%, 8/01/34 | 12,375 | 13,186,429 |
| | | 67,185,224 |
| Georgia — 2.8% | | |
| Gwinnett County Hospital Authority, Refunding RB, Gwinnett Hospital System, Series D (AGM), 5.50%, 7/01/41 | 3,425 | 3,481,444 |
| Metropolitan Atlanta Rapid Transit Authority, RB, Third Indenture, Series B (AGM), 5.00%, 7/01/34 | 4,830 | 5,060,729 |
| | | 8,542,173 |
| Idaho — 0.1% | | |
| Idaho Housing & Finance Association, RB, S/F Mortgage, Series E, AMT, 6.00%, 1/01/32 | 280 | 292,807 |
| Illinois — 7.6% | | |
| Chicago Board of Education Illinois, GO, Refunding, Chicago School Reform Board, Series A (NPFGC), 5.50%, 12/01/26 | 2,080 | 2,331,410 |
| Chicago Transit Authority, RB, Federal Transit Administration Section 5309, Series A (AGC), 6.00%, 6/01/26 | 3,400 | 3,900,548 |
| City of Chicago Illinois, GO, Refunding, Projects, Series A (AGM): | | |
| 5.00%,
1/01/28 | 2,315 | 2,440,079 |
| 5.00%,
1/01/29 | 3,585 | 3,752,706 |
| 5.00%,
1/01/30 | 1,430 | 1,488,887 |
| City of Chicago Illinois, RB, General, Third Lien, Series C (AGM), 5.25%, 1/01/35 | 2,085 | 2,158,392 |
| City of Chicago Illinois, Refunding RB, Second Lien (NPFGC), 5.50%, 1/01/30 | 2,270 | 2,504,378 |
| State of Illinois, RB, Build Illinois, Series B, 5.25%, 6/15/28 | 4,000 | 4,249,960 |
| | | 22,826,360 |
| Indiana — 3.5% | | |
| Indiana Municipal Power Agency, RB, Series A (NPFGC), 5.00%, 1/01/42 | 8,000 | 8,021,920 |
| Municipal
Bonds | Par (000) | Value |
| Indiana (concluded) | | |
| Indianapolis Local Public Improvement Bond Bank, Refunding RB, Waterworks Project, Series A (AGC), 5.50%, 1/01/38 | $ 2,370 | $ 2,557,846 |
| | | 10,579,766 |
| Iowa — 1.0% | | |
| Iowa Finance Authority, Refunding RB, Iowa Health System (AGC), 5.25%, 2/15/29 | 2,915 | 3,005,861 |
| Kansas — 1.8% | | |
| Kansas Development Finance Authority, RB, Sisters of Charity, Series J, 6.13%, 12/01/20 | 3,510 | 3,549,873 |
| Sedgwick & Shawnee Counties Kansas, MRB, Series A-2, AMT (GNMA), 6.20%, 12/01/33 | 1,875 | 1,903,369 |
| | | 5,453,242 |
| Kentucky — 0.9% | | |
| Kentucky Economic Development Finance Authority, RB, Louisville Arena, Sub-Series A-1 (AGC), 6.00%, 12/01/38 | 1,000 | 1,084,470 |
| Kentucky State Property & Buildings Commission, Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/29 | 1,525 | 1,646,970 |
| | | 2,731,440 |
| Louisiana — 1.3% | | |
| Louisiana State Citizens Property Insurance Corp., RB, Series C-3 (AGC), 6.13%, 6/01/25 | 3,550 | 3,939,541 |
| Maine — 1.0% | | |
| City of Portland Maine, RB, General (AGM), 5.25%, 1/01/35 | 2,795 | 2,865,099 |
| Massachusetts — 1.9% | | |
| Massachusetts Bay Transportation Authority, Refunding RB, Senior Series A, 5.00%, 7/01/10 (a) | 5,535 | 5,579,003 |
| Michigan — 12.7% | | |
| City of Detroit Michigan, RB, Second Lien, Series B: | | |
| (AGM),
7.50%, 7/01/33 | 2,000 | 2,401,520 |
| (NPFGC),
5.50%, 7/01/29 | 4,170 | 4,196,855 |
| City of Detroit Michigan, Refunding RB: | | |
| Second
Lien, Series C (BHAC), 5.75%, 7/01/27 | 2,600 | 2,810,704 |
| Second
Lien, Series E (BHAC), 5.75%, 7/01/31 | 5,060 | 5,363,803 |
| Senior
Lien, Series C-1 (AGM), 7.00%, 7/01/27 | 4,180 | 4,868,822 |
| Senior
Lien, Series C-2, (BHAC), 5.25%, 7/01/29 | 1,860 | 1,894,484 |

2 BLACKROCK MUNIHOLDINGS INSURED FUND II, INC. APRIL 30, 2010

Schedule of Investments (continued)
(Percentages shown are based on Net Assets)

| Municipal
Bonds | Par (000) | Value |
| --- | --- | --- |
| Michigan (concluded) | | |
| City of Detroit Michigan, Refunding RB (concluded): | | |
| System, Senior Lien, Series B, (NPFGC), 5.25%, 7/01/22 | $ 5,735 | $ 5,893,114 |
| Michigan State Building Authority, Refunding RB, Facilities Program, Series I (AGC): | | |
| 5.25%, 10/15/24 | 1,440 | 1,536,595 |
| 5.25%, 10/15/25 | 750 | 794,708 |
| Michigan Strategic Fund, Refunding RB, AMT, Detroit Edison Co. (Syncora): | | |
| Pollution, Series C, 5.65%, 9/01/29 | 2,935 | 2,931,331 |
| Project, Series A, 5.50%, 6/01/30 | 2,000 | 1,920,080 |
| Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, 8.25%, 9/01/39 | 3,115 | 3,676,728 |
| | | 38,288,744 |
| Minnesota — 0.7% | | |
| City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC), 6.50%, 11/15/38 | 1,975 | 2,215,318 |
| Nevada — 2.0% | | |
| County of Clark Nevada, RB, Las Vegas- McCarran International Airport, Series A (AGC), 5.25%, 7/01/39 | 5,765 | 5,869,577 |
| Nevada Housing Division, Refunding RB, S/F Mortgage, Mezzanine, Series A-2, AMT (NPFGC), 6.30%, 4/01/22 | 95 | 96,481 |
| | | 5,966,058 |
| New Jersey — 6.0% | | |
| New Jersey EDA, RB, Motor Vehicle Surcharge, Series A (NPFGC), 5.25%, 7/01/33 | 11,000 | 11,196,790 |
| New Jersey Health Care Facilities Financing Authority, RB, Virtua Health (AGC), 5.50%, 7/01/38 | 3,400 | 3,605,700 |
| New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series A (AGC), 5.63%, 12/15/28 | 2,930 | 3,267,477 |
| | | 18,069,967 |
| New York — 0.8% | | |
| New York City Transitional Finance Authority, RB, Fiscal 2009, Series S-3, 5.25%, 1/15/39 | 2,300 | 2,441,726 |
| North Carolina — 0.4% | | |
| North Carolina HFA, RB, Home Ownership, Series 14A, AMT (AMBAC), 5.35%, 1/01/22 | 1,220 | 1,228,833 |
| Pennsylvania — 1.0% | | |
| Pennsylvania Turnpike Commission, RB, Sub-Series B (AGM), 5.25%, 6/01/39 | 3,000 | 3,127,530 |
| Municipal
Bonds | Par (000) | Value |
| Puerto Rico — 1.3% | | |
| Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 6.38%, 8/01/39 | $ 3,500 | $ 3,929,905 |
| South Carolina — 5.5% | | |
| South Carolina State Housing Finance & Development Authority, Refunding RB, Series A-2, AMT (AGM), 6.35%, 7/01/19 | 980 | 994,543 |
| South Carolina State Public Service Authority, RB, Series A (AMBAC), 5.00%, 1/01/42 | 15,000 | 15,540,750 |
| | | 16,535,293 |
| Texas — 15.4% | | |
| City of Dallas Texas, Refunding RB (AGC), 5.25%, 8/15/38 | 2,100 | 2,165,247 |
| City of Houston Texas, Refunding RB, Combined, First Lien, Series A (AGC), 6.00%, 11/15/35 | 6,700 | 7,686,240 |
| County of Bexar Texas, RB, Venue Project, Motor Vehicle Rental (BHAC), 5.00%, 8/15/39 | 1,805 | 1,857,941 |
| Harris County Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, B, 7.25%, 12/01/35 | 1,000 | 1,127,170 |
| Lower Colorado River Authority, Refunding RB, LCRA Transmission Services Project (AGC), 5.50%, 5/15/36 | 2,935 | 3,108,488 |
| Lubbock Cooper ISD Texas, GO, School Building (AGC), 5.75%, 2/15/42 | 1,250 | 1,339,813 |
| North Texas Tollway Authority, RB, System, First Tier, Series K-2 (AGC), 6.00%, 1/01/38 | 1,000 | 1,109,650 |
| North Texas Tollway Authority, Refunding RB, System, First Tier (NPFGC): | | |
| 5.75%, 1/01/40 | 14,750 | 15,436,907 |
| Series A, 5.63%, 1/01/33 | 10,975 | 11,484,898 |
| Series B, 5.75%, 1/01/40 | 1,000 | 1,046,570 |
| | | 46,362,924 |
| Utah — 2.5% | | |
| City of Riverton Utah, RB, IHC Health Services Inc., 5.00%, 8/15/41 | 4,085 | 4,154,568 |
| Tarrant County Cultural Education Facilities Finance Corp., Refunding RB, Christus Health, Series A (AGC), 6.50%, 7/01/37 | 3,000 | 3,328,770 |
| | | 7,483,338 |
| Virginia — 0.9% | | |
| Virginia Public School Authority, RB, School Financing, 6.50%, 12/01/35 | 2,195 | 2,536,827 |

BLACKROCK MUNIHOLDINGS INSURED FUND II, INC. APRIL 30, 2010 3

Schedule of Investments (continued)
(Percentages shown are based on Net Assets)

| Municipal
Bonds | Par (000) | Value |
| --- | --- | --- |
| Washington — 1.9% | | |
| Chelan County Public Utility District No. 1, RB, Chelan Hydro System, Series A, AMT (AMBAC), 5.45%, 7/01/37 | $ 3,840 | $ 3,796,762 |
| Washington Health Care Facilities Authority, Refunding RB, Providence Health, Series C (AGM), 5.25%, 10/01/33 | 1,875 | 1,941,150 |
| | | 5,737,912 |
| Total Municipal Bonds – 119.7% | | 360,346,753 |
| Municipal Bonds Transferred to
Tender Option Bond Trusts (c) | | |
| California — 3.6% | | |
| City of San Jose California, GO, Libraries, Parks, and Public Safety Project (NPFGC), 5.00%, 9/01/30 | 3,805 | 3,929,050 |
| San Diego Community College District California, GO, Election of 2002 (AGM), 5.00%, 5/01/30 | 1,486 | 1,529,703 |
| Sequoia Union High School District California, GO, Refunding, Election, Series B (AGM), 5.50%, 7/01/35 | 5,189 | 5,425,731 |
| | | 10,884,484 |
| Colorado — 3.1% | | |
| Colorado Health Facilities Authority, RB, Catholic Health, Series C-3 (AGM), 5.10%, 10/01/41 | 9,410 | 9,471,353 |
| District of Columbia — 0.6% | | |
| District of Columbia Water & Sewer Authority, RB, Series A, 6.00%, 10/01/35 | 1,700 | 1,915,345 |
| Florida — 7.9% | | |
| City of St. Petersburg Florida, Refunding RB (NPFGC), 5.00%, 10/01/35 | 6,493 | 6,526,363 |
| County of Miami-Dade Florida, GO, Building Better Communities Program, Series B-1, 6.00%, 7/01/38 | 12,500 | 13,877,250 |
| Lee County Housing Finance Authority, RB, Multi-County Program, Series A-2, AMT (GNMA), 6.00%, 9/01/40 | 3,000 | 3,248,520 |
| | | 23,652,133 |
| Georgia — 2.2% | | |
| Augusta-Richmond County Georgia, RB (AGM), 5.25%, 10/01/34 | 6,290 | 6,561,351 |
| Illinois — 6.5% | | |
| City of Chicago Illinois, RB, Series A (AGM), 5.00%, 1/01/33 | 15,000 | 15,248,625 |
| Municipal Bonds Transferred to
Tender Option Bond Trusts (c) | Par (000) | Value |
| Illinois (concluded) | | |
| City of Chicago Illinois, Refunding RB, Second Lien (AGM), 5.25%, 11/01/33 | $ 3,969 | $ 4,200,179 |
| | | 19,448,804 |
| Kentucky — 0.8% | | |
| Kentucky State Property & Building Commission, Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/27 | 2,304 | 2,488,993 |
| Massachusetts — 1.7% | | |
| Massachusetts School Building Authority, RB, Series A (AGM), 5.00%, 8/15/30 | 4,994 | 5,229,807 |
| Nevada — 6.7% | | |
| Clark County Water Reclamation District, GO: | | |
| Limited Tax, 6.00%, 7/01/38 | 10,000 | 11,196,500 |
| Series B, 5.50%, 7/01/29 | 8,247 | 9,049,543 |
| | | 20,246,043 |
| New Jersey — 1.4% | | |
| New Jersey State Housing & Mortgage Finance Agency, RB, S/F Housing, Series CC, 5.25%, 10/01/29 | 3,941 | 4,062,617 |
| New York — 2.5% | | |
| Sales Tax Asset Receivable Corp., RB, Series A (AMBAC), 5.25%, 10/15/27 | 6,751 | 7,523,354 |
| Washington — 2.5% | | |
| City of Bellevue Washington, GO, Refunding (NPFGC), 5.50%, 12/01/39 | 6,883 | 7,524,102 |
| Total
Municipal Bonds Transferred to Tender Option Bond Trusts – 39.5% | | 119,008,386 |
| Total
Long-Term Investments (Cost – $466,251,435) – 159.2% | | 479,355,139 |

4 BLACKROCK MUNIHOLDINGS INSURED FUND II, INC. APRIL 30, 2010

Schedule of Investments (concluded)
(Percentages shown are based on Net Assets)

| Short-Term
Securities | Par (000) | Value |
| --- | --- | --- |
| Florida — 0.4% | | |
| Jacksonville Health Facilities Authority, VRDN 0.24%, 5/03/10 (d) | $ 1,160 | $ 1,160,000 |
| | Shares | |
| Money Market Fund — 2.3% | | |
| FFI Institutional Tax-Exempt Fund, 0.25% (e)(f) | 7,001,650 | 7,001,650 |
| Total
Short-Term Securities (Cost – $8,161,650) – 2.7% | | 8,161,650 |
| Total Investments (Cost – $474,413,085*) – 161.9% | | 487,516,789 |
| Other
Assets Less Liabilities – 1.8% | | 5,467,317 |
| Liability
for Trust Certificates, Including Interest Expense and Fees Payable – (20.2)% | | (60,869,874) |
| Preferred
Shares, at Redemption Value – (43.5)% | | (131,010,306) |
| Net Assets
Applicable to Common Shares – 100.0% | | $ 301,103,926 |

• The cost and unrealized appreciation (depreciation) of investments as of April 30, 2010, as computed for federal income tax purposes, were as follows:

Aggregate cost	$
Gross unrealized
appreciation	$ 16,433,681
Gross unrealized
depreciation	(8,975,359	)
Net unrealized appreciation	$ 7,458,322

| (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 residual interest certificates. These securities serve as collateral
in a financing transaction. |
| (d) | Variable rate security.
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 during the period, for purposes of
Section 2(a)(3) of the Investment Company Act of 1940, were as follows: |

Affiliate — FFI Institutional Tax-Exempt Fund	17,593,090	(10,591,440	)	7,001,650	Income — $ 13,910

| (f) | Represents the current
yield as of report date. | |
| --- | --- | --- |
| • | 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 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 methodologies 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 semi-annual report.

The following table summarizes the inputs used as of April 30, 2010 in determining the fair valuation of the Fund’s investments:

| Investments
in Securities — Valuation Inputs | Level 1 | Level 2 | Level 3 | Total |
| --- | --- | --- | --- | --- |
| Assets: | | | | |
| Long-Term Investments 1 | — | $ 479,355,139 | — | $ 479,355,139 |
| Short-Term Securities | $ 7,001,650 | 1,160,000 | — | 8,161,650 |
| Total | $ 7,001,650 | $ 480,515,139 | — | $ 487,516,789 |

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

BLACKROCK MUNIHOLDINGS INSURED FUND II, INC. APRIL 30, 2010 5

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: June 28, 2010
	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: June 28, 2010
	By:	/s/ Neal J. Andrews
		Neal J. Andrews
		Chief Financial Officer (principal financial officer) of
		BlackRock MuniHoldings Insured Fund II, Inc.
	Date: June 28, 2010