MuniHldgs Ins II -- 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: 04/01/2008 – 06/30/2008

Item 1 – Schedule of Investments

BlackRock MuniHoldings Insured Fund II, Inc.             
Schedule of Investments June 30, 2008 (Unaudited)    (Percentages shown are based on Net Assets) 
 
            Par     
State    Municipal Bonds        (000)           Value 
 
 
 
 
Alabama - 1.1%    Jefferson County, Alabama, Limited Obligation School Warrants,         
    Series A, 5.50%, 1/01/22        $ 3,580    $ 3,339,710 
 
 
 
 
Alaska - 1.3%    Anchorage, Alaska, Water Revenue Refunding Bonds, 6%, 9/01/09 (a)(b)    370    390,328 
    Anchorage, Alaska, Water Revenue Refunding Bonds, 6%, 9/01/24 (a)    1,630    1,681,769 
    Matanuska-Susitna Boro, Alaska, GO, Series A, 6%, 3/01/10 (b)(c)    1,700    1,793,585 
           
                3,865,682 
 
 
 
 
Arkansas - 4.2%    Arkansas State Development Finance Authority, M/F Mortgage Revenue         
    Refunding Bonds, Series C, 5.35%, 12/01/35 (c)(d)        12,215    12,228,681 
 
 
 
 
California - 14.2%    California State, Various Purpose, GO, 5.25%, 12/01/22 (f)    2,935    3,060,559 
    California State, Veterans, GO, Refunding, AMT, Series BZ,         
    5.35%, 12/01/21 (c)        9,350    9,351,028 
    Dixon, California, Unified School District, GO (Election of 2002),         
    5.20%, 8/01/44 (f)        2,405    2,432,657 
    Modesto, California, Schools Infrastructure Financing Agency, Special Tax         
    Bonds, 5.50%, 9/01/36 (a)        4,240    4,255,052 
    Port of Oakland, California, Revenue Bonds, AMT, Series K,         
    5.75%, 11/01/21 (g)        3,000    3,004,110 
    Port of Oakland, California, Revenue Refunding Bonds, AMT, Series L,         
    5.375%, 11/01/27 (c)(g)        5,000    4,914,100 
    Rancho Cucamonga, California, Redevelopment Agency, Tax         
    Allocation Refunding Bonds (Rancho Redevelopment Project),         
    Series A, 5%, 9/01/34 (c)        1,500    1,459,980 
    Roseville, California, Joint Union High School District, GO (Election of         
    2004), Series A, 5%, 8/01/29 (g)        2,985    2,997,298 
    Sacramento, California, City Financing Authority, Capital Improvement         
    Revenue Bonds, 5%, 12/01/27 (a)        150    151,554 
    San Francisco, California, City and County Airport Commission,         
    International Airport, Special Facilities Lease Revenue Bonds (SFO Fuel         
    Company LLC), AMT, Series A, 6.10%, 1/01/20 (f)        1,250    1,277,113 
    Stockton, California, Public Financing Revenue Bonds (Redevelopment         
    Projects), Series A, 5.25%, 9/01/31 (h)        495    470,780 
    Stockton, California, Public Financing Revenue Bonds (Redevelopment         
    Projects), Series A, 5.25%, 9/01/34 (h)        2,930    2,740,283 
    Vista, California, COP (Community Projects), 5%, 5/01/37 (c)    5,400    5,286,600 
           
                41,401,114 
 
 
 
 
Portfolio Abbreviations             
 
 
 

To simplify the listings of the portfolio holdings in the Schedule of Investments, the names of many of the securities have been abbreviated according to the list below.

AMT    Alternative Minimum Tax (subject to)    HFA    Housing Finance Agency 
CABS    Capital Appreciation Bonds    IDA    Industrial Development Authority 
COP    Certificates of Participation    M/F    Multi-Family 
DRIVERS    Derivative Inverse Tax-Exempt Receipts    PCR    Pollution Control Revenue Bonds 
EDA    Economic Development Authority    S/F    Single-Family 
GO    General Obligation Bonds    VRDN    Variable Rate Demand Notes 
HDA    Housing Development Authority         

1

BlackRock MuniHoldings Insured Fund II, Inc.             
Schedule of Investments June 30, 2008 (Unaudited)    (Percentages shown are based on Net Assets) 
 
            Par     
State    Municipal Bonds        (000)    Value 
 
 
 
 
Colorado - 3.8%    Aurora, Colorado, COP, 5.75%, 12/01/10 (a)(b)    $ 6,285     $6,711,060 
    Colorado HFA, Revenue Refunding Bonds (S/F Program), AMT,         
    Senior Series A-2, 7.50%, 4/01/31        200    207,808 
    Colorado Health Facilities Authority, Hospital Revenue Refunding Bonds         
    (Poudre Valley Health Care), Series A, 5.75%, 12/01/09 (b)(f)    4,000    4,230,600 
           
                11,149,468 
 
 
 
 
Connecticut - 0.5%    Connecticut State, GO, Refunding, Series D, 5%, 12/01/24 (c)    1,520    1,570,464 
 
 
 
District of Columbia -    District of Columbia, Deed Tax Revenue Bonds (Housing Production Trust         
0.9%    Fund - New Communities Project), Series A, 5%, 6/01/32 (c)    2,500    2,479,225 
 
 
 
Florida - 22.3%    Brevard County, Florida, Health Facilities Authority, Healthcare Facilities         
    Revenue Bonds (Health First Inc. Project), 5%, 4/01/34        2,600    2,388,386 
    Broward County, Florida, HFA, S/F Mortgage Revenue Refunding Bonds,         
    AMT, Series E, 5.90%, 10/01/39 (i)(j)        2,310    2,298,866 
    Broward County, Florida, School Board, COP, Series A, 5.25%, 7/01/33 (f)    5,600    5,660,816 
    Hillsborough County, Florida, HFA, S/F Mortgage Revenue Bonds, AMT,         
    Series 1, 5.375%, 10/01/49 (i)(j)        3,385    3,214,768 
    Hillsborough County, Florida, IDA, Hospital Revenue Bonds (H. Lee Moffitt         
    Cancer Center Project), Series A, 5.25%, 7/01/37        4,700    4,484,834 
    Hillsborough County, Florida, IDA, PCR, Refunding (Tampa Electric         
    Company Project), Series B, 5.15%, 9/01/25        1,200    1,204,776 
    Lee Memorial Health System, Florida, Hospital Revenue Bonds, Series A,         
    5%, 4/01/32 (a)        5,000    4,890,800 
    Miami-Dade County, Florida, Aviation Revenue Bonds, DRIVERS, VRDN,         
    AMT, Series A, 8.009%, 10/01/11 (e)(f)        34    30,233 
    Miami-Dade County, Florida, Aviation Revenue Refunding Bonds (Miami         
    International Airport), AMT, Series A, 5.50%, 10/01/41 (f)    6,700    6,720,703 
    Miami-Dade County, Florida, School Board, COP, Refunding, Series B,         
    5.25%, 5/01/28 (k)        5,000    5,068,650 
    Miami-Dade County, Florida, School Board, COP, Refunding, Series B,         
    5.25%, 5/01/31 (k)        3,600    3,632,796 
    Miami-Dade County, Florida, School Board, COP, Series A,         
    5%, 5/01/21 (f)(g)        5,000    5,135,150 
    Miami-Dade County, Florida, Special Obligation Revenue Bonds,         
    Sub-Series A, 5.24%, 10/01/37 (c)(l)        3,670    677,078 
    Miami, Florida, Special Obligation Revenue Bonds (Street and Sidewalk         
    Improvement Program), 5%, 1/01/37 (c)        3,500    3,336,620 
    Okaloosa County, Florida, Water and Sewer Revenue Refunding Bonds, 5%,         
    7/01/36 (f)        2,100    2,108,253 
    Pasco County, Florida, Half-Cent Sales Tax Revenue Bonds,         
    5.125%, 12/01/28 (a)        6,300    6,342,651 
    Saint Johns County, Florida, Water and Sewer Revenue Bonds, CABS,         
    5.352%, 6/01/31 (a)(l)        5,065    1,363,042 
    Seminole County, Florida, Water and Sewer Revenue Bonds,         
    5%, 10/01/31        6,250    6,316,938 
               
                64,875,360 
 
 
 
 

2

BlackRock MuniHoldings Insured Fund II, Inc.             
Schedule of Investments June 30, 2008 (Unaudited)    (Percentages shown are based on Net Assets) 
 
            Par     
State    Municipal Bonds        (000)    Value 
 
 
 
 
Idaho - 0.1%    Idaho Housing and Finance Association, S/F Mortgage Revenue Bonds,         
    AMT, Series E, 6%, 1/01/32        $ 360    $ 369,011 
 
 
 
 
Illinois - 12.9%    Chicago, Illinois, GO (Neighborhoods Alive 21 Program), Series A,         
    6%, 7/01/10 (b)(g)        2,185    2,344,024 
    Chicago, Illinois, GO, Series A, 6%, 7/01/10 (b)(g)        18,130    19,449,501 
    Chicago, Illinois, O'Hare International Airport, General Airport Revenue         
    Refunding Bonds, Third Lien, AMT, Series A, 5.75%, 1/01/19 (c)    3,125    3,145,626 
    Chicago, Illinois, O'Hare International Airport Revenue Bonds, Third Lien,         
    AMT, Series B-2, 6%, 1/01/29 (m)        7,300    7,405,631 
    Chicago, Illinois, O'Hare International Airport Revenue Bonds, Third Lien,         
    Series A, 5%, 1/01/31 (c)        1,430    1,368,567 
    Illinois State Finance Authority, Revenue Refunding Bonds (Central DuPage         
    Health System), VRDN, Series B, 1.90%, 11/01/38 (e)        3,500    3,500,000 
    Lake, Cook, Kane and McHenry Counties, Illinois, Community Unit School         
    District Number 220, GO, 6%, 12/01/20 (g)        125    131,769 
               
                37,345,118 
 
 
 
 
Indiana - 5.3%    Indiana Municipal Power Agency, Power Supply System Revenue Bonds,         
    Series A, 5%, 1/01/37 (c)        8,000    7,717,440 
    Indiana Municipal Power Agency, Power Supply System Revenue Bonds,         
    Series A, 5%, 1/01/42 (c)        8,000    7,667,920 
               
                15,385,360 
 
 
 
 
Kansas - 2.2%    Kansas State Development Finance Authority, Health Facilities Revenue         
    Bonds (Sisters of Charity Leavenworth), Series J, 6.125%, 12/01/20    3,510    3,676,234 
    Sedgwick and Shawnee Counties, Kansas, S/F Mortgage Revenue Bonds,         
    AMT, Series A-2, 6.20%, 12/01/33 (j)        2,615    2,647,872 
               
                6,324,106 
 
 
 
 
Louisiana - 0.6%    Louisiana State, Gas and Fuels Tax Revenue Bonds, Series A,         
    5%, 5/01/41 (g)        1,600    1,574,512 
 
 
 
 
Michigan - 3.8%    Michigan State Hospital Finance Authority, Revenue Refunding Bonds         
    (Mercy-Mount Clemens), Series A, 6%, 5/15/09 (b)(c)        1,000    1,045,360 
    Michigan State Strategic Fund, Limited Obligation Revenue Refunding         
    Bonds (Detroit Edison Company Pollution Control Project), AMT, Series A,         
    5.50%, 6/01/30 (m)        2,000    1,947,760 
    Michigan State Strategic Fund, Limited Obligation Revenue Refunding         
    Bonds (Detroit Edison Company Pollution Control Project), AMT, Series C,         
    5.65%, 9/01/29 (m)        5,000    5,043,050 
    Saint Clair County, Michigan, Economic Revenue Refunding Bonds (Detroit         
    Edison Co. Project), Series AA, 6.40%, 8/01/24 (a)        3,000    3,065,730 
               
                11,101,900 
 
 
 
 
Minnesota - 4.7%    Prior Lake, Minnesota, Independent School District Number 719, GO,         
    5.50%, 2/01/16 (f)        2,555    2,661,876 
    Prior Lake, Minnesota, Independent School District Number 719, GO,         
    5.50%, 2/01/17 (f)        1,830    1,906,549 

3

BlackRock MuniHoldings Insured Fund II, Inc.             
Schedule of Investments June 30, 2008 (Unaudited)    (Percentages shown are based on Net Assets) 
 
            Par     
State    Municipal Bonds        (000)           Value 
 
 
 
 
    Prior Lake, Minnesota, Independent School District Number 719, GO,         
    5.50%, 2/01/18 (f)        $ 3,570    $ 3,719,333 
    Prior Lake, Minnesota, Independent School District Number 719, GO,         
    5.50%, 2/01/19 (f)        2,840    2,958,797 
    Sauk Rapids, Minnesota, Independent School District Number 47, GO,         
    Series A, 5.625%, 2/01/18 (c)        2,185    2,321,366 
               
                13,567,921 
 
 
 
 
Nevada - 0.0%    Nevada Housing Division, S/F Mortgage Revenue Bonds, AMT, Series A-2,         
    6.30%, 4/01/22 (c)        95    96,209 
 
 
 
 
New Jersey - 6.1%    New Jersey EDA, Cigarette Tax Revenue Bonds, 5.75%, 6/15/34 (k)    6,200    6,411,110 
    New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A, 5.25%,         
    7/01/33 (c)        11,000    11,186,670 
               
                17,597,780 
 
 
 
 
New York - 5.8%    Nassau Health Care Corporation, New York, Health System Revenue Bonds,         
    5.75%, 8/01/09 (b)(f)        14,000    14,850,640 
    Tobacco Settlement Financing Corporation of New York Revenue Bonds,         
    Series A-1, 5.25%, 6/01/21 (a)        2,000    2,069,020 
               
                16,919,660 
 
 
 
 
North Carolina - 0.4%    North Carolina HFA, Home Ownership Revenue Bonds, AMT, Series 14-A,         
    5.35%, 1/01/22 (a)        1,235    1,238,730 
 
 
 
 
Ohio - 1.0%    Aurora, Ohio, City School District, COP, 6.10%, 12/01/09 (b)(c)    1,745    1,855,354 
    Kent State University, Ohio, University Revenue Bonds, 6%, 5/01/24 (a)    1,000    1,044,660 
           
                2,900,014 
 
 
 
 
Oklahoma - 0.9%    Claremore, Oklahoma, Public Works Authority, Capital Improvement         
    Revenue Refunding Bonds, Series A, 5.25%, 6/01/14 (b)(f)    2,385    2,623,738 
 
 
 
Pennsylvania - 0.1%    Washington County, Pennsylvania, Capital Funding Authority Revenue         
    Bonds (Capital Projects and Equipment Program), 6.15%, 12/01/29 (a)    305    303,152 
 
 
 
Rhode Island - 3.6%    Providence, Rhode Island, Redevelopment Agency Revenue         
    Refunding Bonds (Public Safety and Municipal Buildings), Series A,         
    5.75%, 4/01/10 (a)(b)        5,555    5,901,799 
    Rhode Island State Health and Educational Building Corporation Revenue         
    Bonds (Rhode Island School of Design), Series D, 5.50%, 8/15/31 (m)    4,685    4,687,061 
           
                10,588,860 
 
 
 
 
South Carolina - 5.6%    South Carolina Housing Finance and Development Authority, Mortgage         
    Revenue Refunding Bonds, AMT, Series A-2, 6.35%, 7/01/19 (f)    1,335    1,372,393 
    South Carolina State Public Service Authority, Revenue Refunding Bonds,         
    Series A, 5%, 1/01/42 (a)        15,000    14,903,400 
               
                16,275,793 
 
 
 
 
Tennessee - 1.3%    Metropolitan Government of Nashville and Davidson County, Tennessee,         
    Health and Education Facilities Board, Revenue Refunding Bonds         
    (Ascension Health Credit), Series A, 5.875%, 11/15/09 (a)(b)    3,500    3,700,970 
    Tennessee HDA, Revenue Bonds (Homeownership Program), AMT,         
    Series 2C, 6%, 7/01/11        70    70,007 
               
                3,770,977 
 
 
 
 

4

BlackRock MuniHoldings Insured Fund II, Inc.             
Schedule of Investments June 30, 2008 (Unaudited)    (Percentages shown are based on Net Assets) 
 
            Par     
State    Municipal Bonds        (000)           Value 
 
 
 
 
Texas - 19.8%    Dallas-Fort Worth, Texas, International Airport, Joint Revenue Bonds,         
    AMT, Series B, 6%, 11/01/23 (c)        $ 1,300    $ 1,307,813 
    Dallas-Fort Worth, Texas, International Airport Revenue Bonds, AMT,         
    Series A, 5.50%, 11/01/33 (c)        16,000    15,509,920 
    Dallas-Fort Worth, Texas, International Airport Revenue Refunding and         
    Improvement Bonds, AMT, Series A, 5.875%, 11/01/17 (g)    1,835    1,851,827 
    Dallas-Fort Worth, Texas, International Airport Revenue Refunding and         
    Improvement Bonds, AMT, Series A, 5.875%, 11/01/18 (g)    2,150    2,162,835 
    Dallas-Fort Worth, Texas, International Airport Revenue Refunding and         
    Improvement Bonds, AMT, Series A, 5.875%, 11/01/19 (g)    2,390    2,397,146 
    El Paso, Texas, Water and Sewer Revenue Refunding and Improvement         
    Bonds, Series A, 6%, 3/01/15 (f)        115    124,615 
    El Paso, Texas, Water and Sewer Revenue Refunding and Improvement         
    Bonds, Series A, 6%, 3/01/16 (f)        170    183,909 
    El Paso, Texas, Water and Sewer Revenue Refunding and Improvement         
    Bonds, Series A, 6%, 3/01/17 (f)        180    194,407 
    Houston, Texas, Community College System, Participation Interests, COP         
    (Alief Center Project), 5.75%, 8/15/22 (c)        4,341    4,454,209 
    Midland, Texas, Certificates of Obligation, GO, 6.10%, 3/01/10 (b)(g)    1,850    1,954,839 
    North Texas Tollway Authority, System Revenue Refunding Bonds, First         
    Tier, 5.75%, 1/01/40 (c)        14,750    15,118,750 
    North Texas Tollway Authority, System Revenue Refunding Bonds, First         
    Tier, Series B, 5.75%, 1/01/40 (c)        1,000    1,025,000 
    North Texas Tollway Authority, System Revenue Refunding Bonds, Series         
    A, 5.625%, 1/01/33 (c)        10,975    11,181,110 
               
                57,466,380 
 
 
 
 
Washington - 4.7%    Chelan County, Washington, Public Utility District Number 001,         
    Consolidated Revenue Bonds (Chelan Hydro System), AMT, Series A, 5.45%,         
    7/01/37 (a)        3,840    3,673,152 
    Lewis County, Washington, GO, Refunding, 5.75%, 12/01/09 (a)(b)    1,805    1,892,885 
    Lewis County, Washington, GO, Refunding, 5.75%, 12/01/24 (a)    1,640    1,681,213 
    Seattle, Washington, Municipal Light and Power Revenue Bonds,         
    6%, 10/01/09 (b)(c)        2,500    2,640,650 
    Seattle, Washington, Water System Revenue Bonds, Series B,         
    6%, 7/01/09 (b)(g)        3,500    3,680,880 
               
                13,568,780 
 
 
 
 
Wisconsin - 0.4%    Wisconsin State Health and Educational Facilities Authority Revenue Bonds         
    (Blood Center of Southeastern Wisconsin Project), 5.75%, 6/01/34    1,250    1,248,263 
 
 
 
Puerto Rico - 2.0%    Puerto Rico Commonwealth, Public Improvement, GO,         
    5.125%, 7/01/30 (f)        5,725    5,779,617 
 
 
 
 
    Total Municipal Bonds (Cost - $377,650,544) - 129.7%        376,955,585 
 
 
 
    Municipal Bonds Transferred to Tender Option Bond Trusts (n)         
 
 
 
California - 10.7%    Palomar Pomerado Health Care District, California, GO         
    (Election of 2004), Series A, 5.125%, 8/01/37 (c)        7,364         7,449,256 
    Sacramento County, California, Airport System Revenue Bonds, AMT,         
    Senior Series B, 5.25%, 7/01/39 (f)        5,350         5,260,681 

5

BlackRock MuniHoldings Insured Fund II, Inc.             
Schedule of Investments June 30, 2008 (Unaudited)    (Percentages shown are based on Net Assets) 
 
            Par     
State    Municipal Bonds Transferred to Tender Option Bond Trusts (n)    (000)           Value 
 
 
 
    San Diego, California, Community College District, GO (Election of         
    2002), 5%, 5/01/30 (f)        $ 1,480    $ 1,508,424 
    San Jose, California, GO (Libraries, Parks and Public Safety Projects),         
    5%, 9/01/30 (c)        3,800    3,840,785 
    Sequoia, California, Unified High School District, GO, Refunding,         
    Series B, 5.50%, 7/01/35 (f)        5,189    5,474,879 
    Tustin, California, Unified School District, Senior Lien Special Tax Bonds         
    (Community Facilities District Number 97-1), Series A, 5%,         
    9/01/32 (f)        4,620    4,612,516 
    Tustin, California, Unified School District, Senior Lien Special Tax Bonds         
    (Community Facilities District Number 97-1), Series A, 5%,         
    9/01/38 (f)        2,915    2,927,417 
               
                   31,073,958 
 
 
 
 
Colorado - 3.2%    Colorado Health Facilities Authority Revenue Bonds (Catholic Health),         
    Series C-3, 5.10%, 10/01/41 (f)        9,400    9,388,040 
 
 
 
 
Florida - 10.0%    Jacksonville, Florida, Health Facilities Authority, Hospital Revenue         
    Bonds (Baptist Medical Center Project), 5%, 8/15/37 (f)    7,740    7,669,179 
    Lee County, Florida, HFA, S/F Mortgage Revenue Bonds (Multi-County         
    Program), AMT, Series A-2, 6%, 9/01/40 (i)(j)        4,500    4,583,520 
    Miami-Dade County, Florida, Aviation Revenue Bonds, AMT, Series A,         
    5%, 10/01/33 (f)        6,730    6,321,088 
    Orlando, Florida, Senior Tourist Development Tax Revenue Bonds (6th         
    Cent Contract Payments), Series A, 5.25%, 11/01/38 (k)    4,000    4,085,560 
    St. Petersburg, Florida, Public Utilities, Revenue Refunding Bonds,         
    5%, 10/01/35 (c)        6,492    6,491,449 
               
                29,150,796 
 
 
 
 
Georgia - 2.3%    Augusta, Georgia, Water and Sewer Revenue Bonds,             
    5.25%, 10/01/34 (f)        6,290    6,552,481 
 
 
 
 
Illinois - 6.6%    Chicago, Illinois, O'Hare International Airport, General Airport Revenue         
    Refunding Bonds, Third Lien, AMT, Series A, 5%, 1/01/38 (f)    15,000    14,910,600 
    Chicago, Illinois, Water Revenue Refunding Bonds, Second Lien,         
    5.25%, 11/01/33 (f)        3,972    4,119,783 
               
                19,030,383 
 
 
 
 
Massachusetts - 3.7%    Massachusetts Bay Transportation Authority, Revenue Refunding Bonds,         
    Unrefunded Balance, Series A, 5%, 7/01/35        5,535    5,545,406 
    Massachusetts State School Building Authority, Dedicated Sales Tax         
    Revenue Bonds, Series A, 5%, 8/15/30 (f)        4,998    5,077,550 
               
                10,622,956 
 
 
 
 
New Jersey - 1.0%    New Jersey State Turnpike Authority, Turnpike Revenue Bonds, Series C,         
    5%, 1/01/30 (f)        2,998    3,049,800 
 
 
 
 
New York - 2.4%    New York City, New York, Sales Tax Asset Receivable Corporation         
    Revenue Bonds, Series A, 5.25%, 10/15/27 (a)        6,750    7,009,267 
 
 
 
 
Washington - 2.4%    Bellevue, Washington, GO, Refunding, 5.50%, 12/01/39 (c)    6,885    7,096,926 
 
 
 
    Total Municipal Bonds Transferred to Tender Option Bond Trusts         
    (Cost - $125,030,955) - 42.3%            122,974,607 
 
 
 
 

6

BlackRock MuniHoldings Insured Fund II, Inc.             
Schedule of Investments June 30, 2008 (Unaudited)    (Percentages shown are based on Net Assets) 
 
                                                           Short-Term Securities        Shares       Value 
 
 
 
                                                           Merrill Lynch Institutional Tax-Exempt Fund, 1.73% (o)(p)    7,389,380    $  7,389,380 
 
 
                                                           Total Short-Term Securities (Cost - $7,389,380) - 2.5%        7,389,380 
 
 
                                                           Total Investments (Cost - $510,070,879*) - 174.5%            507,319,572 
                                                           Other Assets Less Liabilities - 2.1%            6,169,080 
                                                           Liability for Trust Certificates, Including Interest             
                                                           Expense Payable - (26.6)%        (77,419,874) 
                                                           Preferred Stock at Redemption Value - (50.0)%        (145,353,632) 
       
                                                           Net Assets Applicable to Common Stock - 100.0%        $ 290,715,146 
       

* The cost and unrealized appreciation (depreciation) of investments as of June 30, 2008, as computed for federal income tax purposes, were as follows:

Aggregate cost    $ 432,515,428 
   
Gross unrealized appreciation    $ 6,653,565 
Gross unrealized depreciation    (9,040,121) 
   
Net unrealized depreciation    $ (2,386,556) 
   

(a)      AMBAC Insured.
 
(b)      U.S. government securities, held in escrow, are used to pay interest on this security, as well as, retire the bond in full at the date indicated, typically at a premium to par.
 
(c)      MBIA Insured.
 
(d)      FHA Insured.
 
(e)      Variable rate security. Rate shown is as of report date. Maturity shown is the final maturity date.
 
(f)      FSA Insured.
 
(g)      FGIC Insured.
 
(h)      Radian Insured.
 
(i)      FHLMC Collateralized.
 
(j)      FNMA/GNMA Collateralized.
 
(k)      Assured Guaranty Insured.
 
(l)      Represents a zero coupon bond. Rate shown reflects the effective yield at the time of purchase.
 
(m)      XL Capital Insured.
 
(n)      Securities represents 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.
 
(o)      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    7,069,063    $ 304,246 
 
 
(p) Represents the current yield as of report date.         

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 MuniHoldings Insured Fund II, Inc.

By: /s/ Donald C. Burke
Donald C. Burke
Chief Executive Officer of
BlackRock MuniHoldings Insured Fund II, Inc.

Date: August 22, 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: August 22, 2008

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

Date: August 22, 2008