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 811-8707 Name of Fund: MuniHoldings Insured Fund, Inc. Fund Address: P.O. Box 9011 Princeton, NJ 08543-9011 Name and address of agent for service: Robert C. Doll, Jr., Chief Executive Officer, MuniHoldings 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: (609) 282-2800 Date of fiscal year end: 04/30/06 Date of reporting period: 05/01/05 - 07/31/05 Item 1 - Schedule of Investments MuniHoldings Insured Fund, Inc. Schedule of Investments as of July 31, 2005 (in Thousands) Face State Amount Municipal Bonds Value Arizona - 2.1% $ 3,590 Pinal County, Arizona, COP, 5.25% due 12/01/2023 $ 3,790 Arkansas - 2.2% 3,710 Arkansas State Development Finance Authority, M/F Mortgage Revenue Refunding Bonds, DRIVERS, Series 964Z, 7.793% due 6/01/2010 (b)(e)(i) 4,098 California - 36.6% 3,250 California Pollution Control Financing Authority, PCR, Refunding, DRIVERS, AMT, Series 878Z, 7.778% due 12/01/2009 (b)(i) 3,798 California State Department of Water Resources, Power Supply Revenue Bonds, Series A: 4,000 5.375% due 5/01/2017 (d) 4,382 3,400 5.25% due 5/01/2020 3,652 3,325 5.375% due 5/01/2022 3,596 2,000 California State Public Works Board, Lease Revenue Bonds (Department of General Services - Capitol East End Complex), Series A, 5% due 12/01/2027 (a) 2,083 1,300 California State, Various Purpose, GO, 5.50% due 4/01/2028 1,432 East Side Union High School District, California, Santa Clara County, GO (Election of 2002): 1,800 Series B, 5% due 8/01/2027 (c) 1,895 1,335 Series D, 5% due 8/01/2021 (d) 1,427 5,155 Series D, 5% due 8/01/2029 (d) 5,450 3,000 Golden State Tobacco Securitization Corporation of California, Tobacco Settlement Revenue Bonds, Series B, 5.75% due 6/01/2008 (g) 3,230 5,305 Industry, California, Urban Development Agency, Tax Allocation Bonds (Civic-Recreational-Industrial Redevelopment Project No. 1), Series B, 5% due 5/01/2019 (b) 5,601 Los Angeles, California, Unified School District, GO: 2,000 (Election of 1997), Series F, 5% due 1/01/2028 (c) 2,111 4,940 Series A, 5% due 1/01/2028 (b) 5,214 2,565 Modesto, California, Schools Infrastructure Financing Agency, Special Tax Bonds, 5.50% due 9/01/2036 (a) 2,841 Portfolio Abbreviations To simplify the listings of MuniHoldings 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) COP Certificates of Participation DRIVERS Derivative Inverse Tax-Exempt Receipts EDA Economic Development Authority GO General Obligations Bonds HDA Housing Development Authority HFA Housing Finance Agency IDA Industrial Development Authority PCR Pollution Control Revenue Bonds VRDN Variable Rate Demand Notes MuniHoldings Insured Fund, Inc. Schedule of Investments as of July 31, 2005 (concluded) (in Thousands) Face State Amount Municipal Bonds Value California $ 2,000 Sacramento County, California, Sanitation District, Financing Authority, (concluded) Revenue Refunding Bonds, Series A, 5.875% due 12/01/2027 $ 2,040 5,005 San Francisco, California, City & County, GO (California Academy of Sciences Improvements), Series E, 5% due 6/15/2023 (b) 5,314 1,265 San Jose, California, GO (Libraries, Parks and Public Safety Projects), 5% due 9/01/2030 (b) 1,330 San Pablo, California, Joint Powers Financing Authority, Tax Allocation Revenue Refunding Bonds (b): 2,635 5.66%* due 12/01/2024 994 2,355 5.66%* due 12/01/2025 835 2,355 5.66%* due 12/01/2026 789 2,800 Tustin, California, Unified School District, Senior Lien Special Tax Bonds (Community Facilities District No. 97-1), Series A, 5% due 9/01/2038 (f) 2,898 2,000 University of California Revenue Bonds (Multiple Purpose Projects), Series Q, 5% due 9/01/2022 (f) 2,107 3,480 West Contra Costa, California, Unified School District, GO, Series C, 5% due 8/01/2021 (c) 3,697 2,435 William S. Hart Union High School District, California, Capital Appreciation, GO (Election of 2001), Series B, 4.72%* due 9/01/2025 (f) 933 Colorado - 6.4% Aurora, Colorado, COP (a): 2,440 5.75% due 12/01/2015 2,704 2,560 5.75% due 12/01/2016 2,837 2,730 5.75% due 12/01/2017 3,022 2,890 5.75% due 12/01/2018 3,197 Connecticut - 2.8% 5,000 Connecticut State Health and Educational Facilities Authority Revenue Bonds (Connecticut State University System), Series E, 5% due 11/01/2033 (c) 5,241 Florida - 0.4% 255 Escambia County, Florida, Health Facilities Authority, Health Facility Revenue Bonds (Florida Health Care Facility Loan), 5.95% due 7/01/2020 (a) 257 2,225 Miami-Dade County, Florida, Subordinate Special Obligation Revenue Bonds, Series A, 5.240%* due 10/01/2037 (b) 423 Georgia - 1.2% 2,000 Augusta, Georgia, Water and Sewer Revenue Bonds, 5.25% due 10/01/2034 (f) 2,166 Illinois - 11.9% Chicago, Illinois, GO (c): 1,270 5.50% due 1/01/2021 1,354 7,965 Series A, 6% due 7/01/2010 (g) 8,993 2,150 Chicago, Illinois, O'Hare International Airport Revenue Bonds, DRIVERS, AMT, Series 845-Z, 9.319% due 1/01/2012 (b)(d)(i) 2,703 2,965 5.75% due 1/01/2011 (g) 3,309 535 5.75% due 1/01/2017 590 4,500 Illinois State, GO, First Series, 6% due 1/01/2018 (c) 4,969 45 Lake, Cook, Kane and McHenry Counties, Illinois, Community Unit School District No. 220, GO, 5.75% due 12/01/2019 (c) 50 Indiana - 1.2% 2,000 Indiana Transportation Finance Authority, Highway Revenue Bonds, Series A, 5.25% due 6/01/2029 (c) 2,152 Massachusetts - 11.0% 3,565 Massachusetts Bay Transportation Authority, Sales Tax Revenue Refunding Bonds, Senior Series A, 5% due 7/01/2035 3,675 1,415 Massachusetts State, HFA, Housing Development Revenue Refunding Bonds, AMT, Series A, 5.15% due 6/01/2011 (b) 1,433 Massachusetts State, HFA, Rental Housing Mortgage Revenue Bonds, AMT (f): 3,300 Series A, 5.15% due 7/01/2026 3,348 2,440 Series C, 5.50% due 7/01/2032 2,538 3,685 Massachusetts State School Building Authority, Dedicated Sales Tax Revenue Bonds, Series A, 5% due 8/15/2030 (f) 3,909 5,000 Massachusetts State Special Obligation Dedicated Tax Revenue Bonds, 5.25% due 1/01/2014 (c)(g) 5,526 Michigan - 8.0% 2,035 Boyne City, Michigan, Public School District, GO, 5.75% due 5/01/2009 (c)(g) 2,219 7,900 Detroit, Michigan, Sewer Disposal Revenue Bonds, Senior Lien, VRDN, Series A, 2.22% due 7/01/2033 (f)(h) 7,900 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds, AMT (d): 1,500 (Detroit Edison Pollution), Series B, 5.65% due 9/01/2029 1,606 1,750 DRIVERS, Series 857Z, 8.378% due 3/01/2010 (i) 1,996 1,000 DRIVERS, Series 858Z, 8.079% due 12/01/2011 (i) 1,154 Minnesota - 2.4% 4,015 Sauk Rapids, Minnesota, Independent School District Number 47, GO, Series A, 5.65% due 2/01/2019 (b) 4,416 Missouri - 6.8% 2,000 Cape Girardeau, Missouri, School District Number 063, GO (Missouri Direct Deposit Program), 5.50% due 3/01/2018 (c) 2,167 Mehlville, Missouri, School District Number R-9, COP (f): 2,610 (Missouri Capital Improvement Projects), 5.50% due 9/01/2012 (g) 2,927 1,925 Series A, 5.50% due 3/01/2014 2,112 2,175 Series A, 5.50% due 3/01/2015 2,378 1,170 Series A, 5.50% due 3/01/2016 1,279 1,500 Series A, 5.50% due 3/01/2017 1,639 Nebraska - 2.1% Omaha Convention Hotel Corporation, Nebraska, Convention Center Revenue Bonds, First Tier, Series A (a): 1,585 5.50% due 4/01/2020 1,742 2,000 5.50% due 4/01/2021 2,199 New Jersey - 12.4% New Jersey EDA, Cigarette Tax Revenue Bonds: 5,295 5.75% due 6/15/2029 5,675 3,800 5.75% due 6/15/2034 4,227 6,700 New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A, 5.25% due 7/01/2033 (b) 7,250 5,500 New Jersey State Turnpike Authority, Turnpike Revenue Bonds, Series C, 5% due 1/01/2030 (f) 5,830 New York - 26.6% 1,185 Metropolitan Transportation Authority, New York, Revenue Bonds, Series B, 5% due 11/15/2030 (a) 1,256 10,000 Nassau Health Care Corporation, New York, Health System Revenue Bonds, 5.75% due 8/01/2009 (f)(g) 11,181 New York City, New York, GO, Refunding: 5,865 Series C, 5.875% due 8/01/2006 (b)(g) 6,135 385 Series C, 5.875% due 2/01/2016 (b) 402 7,500 Series G, 5.75% due 2/01/2017 (f) 7,720 7,085 New York City, New York, GO, Series G, 5.75% due 10/15/2007 (f)(g) 7,588 4,095 New York City, New York, Sales Tax Asset Receivable Corporation Revenue Bonds, Series A, 5.25% due 10/15/2027 (a) 4,473 2,645 New York State Dormitory Authority Revenue Bonds (School Districts Financing Program), Series D, 5.25% due 10/01/2023 (b) 2,879 Tobacco Settlement Financing Corporation of New York Revenue Bonds, Series C-1: 4,900 5.50% due 6/01/2017 5,389 2,000 5.50% due 6/01/2021 2,197 Oregon - 0.8% 1,400 Portland, Oregon, Urban Renewal and Redevelopment Tax Allocation Bonds (Oregon Convention Center), Series A, 5.75% due 6/15/2015 (a) 1,557 Pennsylvania - 10.8% 3,370 Lehigh County, Pennsylvania, IDA, PCR, Refunding (Pennsylvania Power and Light Utilities Corporation Project), 4.75% due 2/15/2027 (c) 3,443 3,900 Pennsylvania State Higher Educational Facilities Authority, State System of Higher Education Revenue Bonds, Series O, 5.125% due 6/15/2024 (a) 4,030 6,045 Philadelphia, Pennsylvania, Airport Revenue Bonds (Philadelphia Airport System), AMT, Series B, 5.50% due 6/15/2017 (c) 6,357 2,015 Seneca Valley, Pennsylvania, School District, GO, 5% due 1/01/2019 (c) 2,175 1,800 Washington County, Pennsylvania, Capital Funding Authority Revenue Bonds (Capital Projects and Equipment Program), 6.15% due 12/01/2029 (a) 1,926 1,885 York County, Pennsylvania, School of Technology Authority, Lease Revenue Refunding Bonds, 5.50% due 2/15/2022 (c) 2,088 Rhode Island - 4.7% 5,000 Providence, Rhode Island, Redevelopment Agency, Revenue Refunding Bonds (Public Safety and Municipal Buildings), Series A, 5.75% due 4/01/2010 (a)(g) 5,585 2,870 Rhode Island State Health and Educational Building Corporation Revenue Bonds (Rhode Island School of Design), Series D, 5.50% due 8/15/2031 (d) 3,162 South Carolina - 0.9% 1,525 Medical University Hospital Authority, South Carolina, FHA-Insured Mortgage Hospital Facilities, Revenue Refunding Bonds, Series A, 5.25% due 2/15/2025 (b)(e) 1,642 Tennessee - 3.1% Tennessee HDA, Revenue Refunding Bonds (Homeownership Program), AMT, Series A (f): 2,890 5.25% due 7/01/2022 3,000 2,655 5.35% due 1/01/2026 2,755 Texas - 5.5% 1,900 Bell County, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds (Scott & White Memorial Hospital), VRDN, Series B-2, 2.26% due 8/15/2029 (b)(h) 1,900 4,000 Dallas-Fort Worth, Texas, International Airport Revenue Bonds, DRIVERS, AMT, Series 778-Z, 8.32% due 11/01/2011 (b)(i) 4,580 2,913 Houston, Texas, Community College System, Participation Interests, COP (Alief Center Project), 5.75% due 8/15/2022 (b) 3,140 500 North Central Texas, Health Facility Development Corporation Revenue Bonds (Methodist Hospitals-Dallas), VRDN, Series B, 2.24% due 10/01/2015 (b)(h) 500 Virginia - 0.7% 1,225 Virginia State HDA, Commonwealth Mortgage Revenue Bonds, Series J, Sub-Series J-1, 5.20% due 7/01/2019 (b) 1,233 Washington - 4.8% 4,000 Bellevue, Washington, GO, Refunding, 5.50% due 12/01/2039 (b) 4,448 2,310 Chelan County, Washington, Public Utility District Number 001, Consolidated Revenue Bonds (Chelan Hydro System), AMT, Series A, 5.45% due 7/01/2037 (a) 2,445 1,810 Snohomish County, Washington, Public Utility District Number 001, Electric Revenue Bonds, 5.50% due 12/01/2022 (f) 2,004 West Virginia - 2.8% 5,000 West Virginia State Housing Development Fund, Housing Finance Revenue Refunding Bonds, Series D, 5.20% due 11/01/2021 (b) 5,183 Wisconsin - 0.3% 500 Wisconsin State Health and Educational Facilities Authority Revenue Bonds (Blood Center of Southeastern Wisconsin Project), 5.50% due 6/01/2024 528 Wyoming - 0.9% 1,500 Wyoming Student Loan Corporation, Student Loan Revenue Refunding Bonds, Series A, 6.20% due 6/01/2024 1,613 Puerto Rico - 3.1% 3,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series RR, 5% due 7/01/2027 (d) 3,734 1,870 Puerto Rico Public Buildings Authority, Government Facilities, Revenue Refunding Bonds, Series D, 5.25% due 7/01/2036 1,979 Total Municipal Bonds (Cost - $305,316) - 172.5% 318,876 Shares Held Short-Term Securities 721 Merrill Lynch Institutional Tax-Exempt Fund (j) 721 Total Short-Term Securities (Cost - $721) - 0.4% 721 Total Investments (Cost - $306,037**) - 172.9% 319,597 Liabilities in Excess of Other Assets - (0.4%) (720) Preferred Stock, at Redemption Value - (72.5%) (134,059) ----------- Net Assets Applicable to Common Stock - 100.0% $ 184,818 =========== * Represents a zero coupon bond; the interest rate shown reflects the effective yield at the time of purchase by the Fund. ** The cost and unrealized appreciation (depreciation) of investments as of July 31, 2005, as computed for federal income tax purposes, were as follows: (in Thousands) Aggregate cost $ 306,037 ============== Gross unrealized appreciation $ 13,832 Gross unrealized depreciation (272) -------------- Net unrealized appreciation $ 13,560 ============== (a) AMBAC Insured. (b) MBIA Insured. (c) FGIC Insured. (d) XL Capital Insured. (e) FHA Insured. (f) FSA Insured. (g) Prerefunded. (h) 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. (i) The rate disclosed is that currently in effect. This rate changes periodically and inversely based upon prevailing market rates. (j) 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: (in Thousands) Net Dividend Affiliate Activity Income Merrill Lynch Institutional Tax-Exempt Fund 600 $14 Financial futures contracts sold as of July 31, 2005 were as follows: (in Thousands) Number of Expiration Face Unrealized Contracts Issue Date Value Appreciation 150 10-Year U.S. Treasury Bond September 2005 $16,851 $203 Item 2 - Controls and Procedures 2(a) - The registrant's certifying officers have reasonably designed such disclosure controls and procedures to ensure material information relating to the registrant is made known to us by others particularly during the period in which this report is being prepared. The registrant's certifying officers have determined that the registrant's disclosure controls and procedures are effective based on our evaluation of these controls and procedures as of a date within 90 days prior to the filing date of this report. 2(b) - There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the last fiscal quarter of the period covered by this report that has materially affected, or is 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. MuniHoldings Insured Fund, Inc. By: /s/ Robert C. Doll, Jr. ----------------------- Robert C. Doll, Jr., Chief Executive Officer MuniHoldings Insured Fund, Inc. Date: September 23, 2005 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/ Robert C. Doll, Jr. ----------------------- Robert C. Doll, Jr., Chief Executive Officer MuniHoldings Insured Fund, Inc. Date: September 23, 2005 By: /s/ Donald C. Burke ----------------------- Donald C. Burke, Chief Financial Officer MuniHoldings Insured Fund, Inc. Date: September 23, 2005