Book of 4 -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-07136

Name of Fund: BlackRock MuniYield Pennsylvania Insured Fund (MPA)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock
MuniYield Pennsylvania Insured Fund, 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: 07/31/2008

Date of reporting period: 11/01/2007 – 07/31/2008

Item 1 – Report to Stockholders



EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS

Annual Report

JULY 31, 2008

BlackRock MuniYield Florida Insured Fund (MFT)

BlackRock MuniYield Michigan Insured Fund, Inc. (MIY)

BlackRock MuniYield New Jersey Insured Fund, Inc. (MJI)

BlackRock MuniYield Pennsylvania Insured Fund (MPA)

NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE


Table of Contents     

 
 
    Page 

 
 
A Letter to Shareholders    3 
Annual Report:     
Fund Summaries    4 
The Benefits and Risks of Leveraging    8 
Swap Agreements    8 
Financial Statements:     
       Schedules of Investments    9 
       Statements of Assets and Liabilities    22 
       Statements of Operations    23 
       Statements of Changes in Net Assets    25 
Financial Highlights    27 
Notes to Financial Statements    31 
Report of Independent Registered Public Accounting Firm    39 
Important Tax Information    40 
Disclosure of Investment Advisory Agreement and Subadvisory Agreement    41 
Automatic Dividend Reinvestment Plan    45 
Officers and Trustees or Directors    46 
Additional Information    49 

2 ANNUAL REPORT

JULY 31, 2008


A Letter to Shareholders

Dear Shareholder

For more than a year, investors have been besieged by a weak housing market, the bursting of the credit bubble that has

troubled the financial sector, and surging food and oil prices, which have stoked inflation concerns. Healthy nonfinancial

corporate profits and robust exporting activity remained among the few bright spots, helping the economy to grow at a

modest, but still positive, pace.

The Federal Reserve Board (the “Fed”) has been aggressive in its attempts to stimulate economic growth and stabilize

financial markets. In addition to slashing the target federal funds rate 325 basis points (3.25%) between September

2007 and April 2008, the central bank introduced the new Term Securities Lending Facility, granted broker-dealers access

to the discount window and used its own balance sheet to help negotiate the sale of Bear Stearns. However, the end of

the period saw a pause in Fed action; the central bank held the target rate steady at 2.0% as it attempted to balance

weak growth and inflationary pressures.

The Fed’s bold response to the financial crisis helped mitigate credit stress and investor anxiety, albeit temporarily.

U.S. equity markets sank sharply over the reporting period, notwithstanding a brief rally in the spring and another in

mid-summer, and international markets followed suit.

Treasury securities also traded in a volatile fashion, but generally rallied (yields fell as prices correspondingly rose), as

the broader flight-to-quality theme persisted. The yield on 10-year Treasury issues, which fell to 3.34% in March, climbed

to the 4.20% range in mid-June as investors temporarily shifted out of Treasury issues in favor of riskier assets (such as

stocks and other high-quality fixed income sectors), then reversed course and declined to 3.99% by period-end when

credit fears re-emerged. Meanwhile, tax-exempt issues underperformed their taxable counterparts, as problems among

municipal bond insurers and the failure in the market for auction rate securities continued to pressure the group.

Overall, the major benchmark indexes generated results that reflected heightened risk aversion:

Total Returns as of July 31, 2008    6-month    12-month 

 
 
U.S. equities (S&P 500 Index)    (7.08)%    (11.09)% 

 
 
Small cap U.S. equities (Russell 2000 Index)    0.86    (6.71) 

 
 
International equities (MSCI Europe, Australasia, Far East Index)    (5.04)    (12.19) 

 
 
Fixed income (Lehman Brothers U.S. Aggregate Index)    (0.63)    6.15 

 
 
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index)    (0.85)    2.83 

 
 
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Capped Index)    (0.80)    0.52 

 
 

Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly
in an index.

Shortly before this shareholder report mailing, the investment landscape was dramatically altered as the ongoing

credit crisis intensified, resulting in a widespread breakdown in the financial services sector and unprecedented govern-

ment intervention. Through periods of market turbulence, as ever, BlackRock's full resources are dedicated to the

management of our clients’ assets. For our most current views on the economy and financial markets, we invite you

to visit www.blackrock.com/funds. As always, we thank you for entrusting BlackRock with your investment assets, and

we look forward to continuing to serve you in the months and years ahead.


THIS PAGE NOT PART OF YOUR FUND REPORT

3


Fund Summary as of July 31, 2008

BlackRock MuniYield Florida Insured Fund

Investment Objective

BlackRock MuniYield Florida Insured Fund (MFT) (the “Fund”) seeks to provide shareholders with as high a level of current income exempt from federal
income taxes as is consistent with its investment policies and prudent investment management by investing primarily in a portfolio of long-term, invest-
ment grade municipal obligations the interest on which, in the opinion of bond counsel to the issuers, is exempt from federal income taxes and which
enables shares of the Fund to be exempt from Florida intangible personal property taxes.

Performance

For the 12 months ended July 31, 2008, the Fund returned (5.10)% based on market price and (1.92)% based on net asset value (“NAV”). For the
same period, the closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average return of (1.42)% on a NAV basis. All
returns reflect reinvestment of dividends. The performance of the Lipper category does not necessarily correlate to that of the Fund, as the Lipper group
comprises funds representing various states and not Florida alone. Nevertheless, a significant overweight in pre-refunded bonds in the one- to five-year
maturity range benefited performance, as the yield curve steepened and these issues outperformed. Conversely, problems within the monoline insur-
ance industry had a negative impact on the performance of the Fund and its peers. Exposure to uninsured hospital bonds and single-family housing
bonds also detracted, as these sectors underperformed over the annual period.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are not guarantee of future results.

Fund Information

Symbol on New York Stock Exchange    MFT 
Initital Offering Date    October 30, 1992 
Yield on Closing Market Price as of July 31, 2008 ($11.75)1    5.46% 
Tax Equivalent Yield2    8.40% 
Current Monthly Distribution per Common Share3    $0.0535 
Current Annualized Distribution per Common Share3    $0.642 
Leverage as of July 31, 20084    42% 

 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
2 Tax equivalent yield assumes the maximum federal tax rate of 35%.
3 The distribution is not constant and is subject to change.
4 As a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to Auction Market Preferred
Shares (“Preferred Shares”) and tender option bond trusts (“TOBs”)) minus the sum of accrued liabilities.


The table below summarizes the changes in the Fund’s market price and net asset value per share:

    7/31/08    10/31/07    Change    High    Low 

 
 
 
 
 
Market Price    $11.75    $12.74     (7.77)%    $13.08    $11.71 
Net Asset Value    $13.42    $14.38     (6.68)%    $14.67    $13.06 

 
 
 
 
 

The following unaudited charts show the portfolio composition and credit quality allocations of the Fund’s long-term investments:

Portfolio Composition         

 
 
    7/31/08    10/31/07 

 
 
Transportation       22%    18% 
Lease Revenue    17    18 
Hospital    14    13 
City, County & State    11    9 
Education    10    11 
Water & Sewer    10    13 
Housing    6    6 
Tax Revenue    5    6 
Power    4    5 
Industrial & Pollution Control    1    1 

 
 

     Credit Quality Allocations5         

 
 
Credit Rating    7/31/08    10/31/07 

 
 
AAA/Aaa    41%    91% 
AA/Aa    41    2 
A/A    12    5 
BBB/Baa    1    2 
Not Rated    56     

 
 

5 Using the higher of Standard & Poor’s (“S&P’s”) or Moody’s
Investors Service (“Moody’s”) ratings.
6 The investment advisor has deemed certain of these non-rated
securities to be of investment grade quality. As of July 31, 2008,
the market value of these securities was $8,223,585, represent-
ing 4% of the Fund’s long-term investments.

4 ANNUAL REPORT

JULY 31, 2008


Fund Summary as of July 31, 2008

BlackRock MuniYield Michigan Insured Fund, Inc.

Investment Objective

BlackRock MuniYield Michigan Insured Fund, Inc. (MIY) (the “Fund”) seeks to provide shareholders with as high a level of current income exempt from
federal income tax and Michigan income taxes as is consistent with its investment policies and prudent investment management by investing primarily
in a portfolio of long-term municipal obligations the interest on which, in the opinion of bond counsel to the issuers, is exempt from federal income tax
and Michigan income taxes.

Performance

For the 12 months ended July 31, 2008, the Fund returned (6.10)% based on market price and (0.35)% based on NAV. For the same period, the
closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average return of (1.42)% on a NAV basis. All returns reflect
reinvestment of dividends. The performance of the Lipper category does not necessarily correlate to that of the Fund, as the Lipper group comprises
funds representing various states and not Michigan alone. Nevertheless, the Fund’s short duration position benefited performance during a period of
rising tax-exempt bond yields. Although the Fund increased its exposure to lower-rated bonds, limited overall exposure to these issues also enhanced
results, as these issues significantly underperformed over the last year amid dramatic widening in credit spreads.


The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are not guarantee of future results.

Fund Information         

 
 
    Symbol on New York Stock Exchange    MIY 
    Initital Offering Date    October 30, 1992 
    Yield on Closing Market Price as of July 31, 2008 ($12.30)1    5.27% 
    Tax Equivalent Yield2    8.11% 
    Current Monthly Distribution per Common Share3    $0.054 
    Current Annualized Distribution per Common Share3    $0.648 
    Leverage as of July 31, 20084    42% 
   
 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
2 Tax equivalent yield assumes the maximum federal tax rate of 35%.
3 The distribution is not constant and is subject to change.
4 As a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to Preferred Shares and
TOBs) minus the sum of accrued liabilities.

The table below summarizes the changes in the Fund’s market price and net asset value per share:

    7/31/08    10/31/07    Change    High    Low 

 
 
 
 
 
Market Price    $12.30    $13.40     (8.21)%    $14.15    $12.21 
Net Asset Value    $14.16    $15.03     (5.79)%    $15.45    $13.99 

 
 
 
 
 

The following unaudited charts show the portfolio composition and credit quality allocations of the Fund’s long-term investments:

Portfolio Composition         

 
 
    7/31/08    10/31/07 

 
 
City, County & State    19%    19% 
Education    15    10 
Hospital    13    22 
Industrial & Pollution Control    13    13 
Water & Sewer    13    8 
Transportation    12    12 
Resource Recovery    7    7 
Lease Revenue    4    4 
Housing    2    2 
Tax Revenue    2    2 
Power        1 

 
 

     Credit Quality Allocations5         

 
 
Credit Rating    7/31/08    10/31/07 

 
 
AAA/Aaa       35%    86% 
AA/Aa    47    3 
A/A    15    9 
BBB/Baa    3    2 

 
 
5 Using the higher of S&P’s or Moody’s ratings.     

ANNUAL REPORT

JULY 31, 2008

5


Fund Summary as of July 31, 2008

BlackRock MuniYield New Jersey Insured Fund, Inc.

Investment Objective

BlackRock MuniYield New Jersey Insured Fund, Inc. (MJI) (the “Fund”) seeks to provide shareholders with as high a level of current income exempt
from federal income tax and New Jersey personal income taxes as is consistent with its investment policies and prudent investment management by
investing primarily in a portfolio of long-term municipal obligations the interest on which, in the opinion of bond counsel to the issuers, is exempt from
federal income tax and New Jersey personal income taxes.

Performance

For the 12 months ended July 31, 2008, the Fund returned (3.50)% based on market price and (0.04)% based on NAV. For the same period, the
closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average return of (1.42)% on a NAV basis. All returns reflect
reinvestment of dividends. The performance of the Lipper category does not necessarily correlate to that of the Fund, as the Lipper group comprises
funds representing various states and not New Jersey alone. Nevertheless, the Fund’s short duration position benefited performance during a period of
rising tax-exempt bond yields. Although the Fund increased its exposure to lower-rated bonds, limited overall exposure to these issues also enhanced
results, as these issues significantly underperformed over the last year amid dramatic widening in credit spreads.


The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are not guarantee of future results.

Fund Information

Symbol on New York Stock Exchange    MJI 
Initital Offering Date    October 30, 1992 
Yield on Closing Market Price as of July 31, 2008 ($12.81)1    5.06% 
Tax Equivalent Yield2    7.78% 
Current Monthly Distribution per Common Share3    $0.054 
Current Annualized Distribution per Common Share3    $0.648 
Leverage as of July 31, 20084    38% 

 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
2 Tax equivalent yield assumes the maximum federal tax rate of 35%.
3 The distribution is not constant and is subject to change.
4 As a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to Preferred Shares and
TOBs) minus the sum of accrued liabilities.


The table below summarizes the changes in the Fund’s market price and net asset value per share:

    7/31/08    10/31/07    Change    High    Low 

 
 
 
 
 
Market Price    $12.81    $13.70     (6.50)%    $14.20    $12.66 
Net Asset Value    $14.23    $15.02     (5.26)%    $15.47    $13.64 

 
 
 
 
 

  The following unaudited charts show the portfolio composition and credit quality allocations of the Fund’s long-term investments:

Portfolio Composition         

 
 
    7/31/08    10/31/07 

 
 
City, County & State    18%    18% 
Transportation    18    19 
Education    17    18 
Lease Revenue    10    10 
Water & Sewer    10    9 
Hospital    10    6 
Industrial & Pollution Control    8    8 
Housing    5    5 
Tax Revenue    2    5 
Tobacco    1    1 
Power    1    1 

 
 

     Credit Quality Allocations5         

 
 
Credit Rating    7/31/08    10/31/07 

 
 
AAA/Aaa    33%    87% 
AA/Aa    46    2 
A/A    11    6 
BBB/Baa    4    4 
BB/Ba        1 
Not Rated         66     

 
 

5 Using the higher of S&P’s or Moody’s ratings.
6 The investment advisor has deemed certain of these non-rated
securities to be of investment grade quality. As of July 31, 2008,
the market value of these securities was $12,649,795, represent-
ing 6% of the Fund’s long-term investments.

6 ANNUAL REPORT

JULY 31, 2008


Fund Summary as of July 31, 2008

BlackRock MuniYield Pennsylvania Insured Fund

Investment Objective

BlackRock MuniYield Pennsylvania Insured Fund (MPA) (the “Fund”) seeks to provide shareholders with as high a level of current income exempt from fed-
eral and Pennsylvania income taxes as is consistent with its investment policies and prudent investment management by investing primarily in a portfolio of
long-term municipal obligations the interest on which, in the opinion of bond counsel to the issuers, is exempt from federal and Pennsylvania income taxes.

Performance

For the 12 months ended July 31, 2008, the Fund returned (7.66)% based on market price and (3.58)% based on NAV. For the same period, the
closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average return of (1.42)% on a NAV basis. All returns reflect
reinvestment of dividends. The performance of the Lipper category does not necessarily correlate to that of the Fund, as the Lipper group comprises
funds representing various states and not Pennsylvania alone. A long duration posture during a period of rising municipal bond yields detracted from
Fund performance over the year. Overweight positions in lower-rated bonds and issues subject to the alternative minimum tax also negatively affected
results, as yield spreads in both sectors widened significantly. Bond Market Association swaps, utilized by management to reduce Fund duration, under-
performed the municipal cash market for much of the recent annual period, which further hampered performance. The Fund’s below-average distribu-
tion rate proved unfavorable as well.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are not guarantee of future results.

Fund Information         

 
 
 
    Symbol on New York Stock Exchange    MPA 
    Initital Offering Date    October 30, 1992 
    Yield on Closing Market Price as of July 31, 2008 ($12.43)1    5.12% 
    Tax Equivalent Yield2    7.88% 
    Current Monthly Distribution per Common Share3    $0.053 
    Current Annualized Distribution per Common Share3    $0.636 
    Leverage as of July 31, 20084    41% 
   
 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
2 Tax equivalent yield assumes the maximum federal tax rate of 35%.
3 The distribution is not constant and is subject to change.
4 As a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to Preferred Shares and
TOBs) minus the sum of accrued liabilities.

The table below summarizes the changes in the Fund’s market price and net asset value per share:

    7/31/08    10/31/07    Change    High    Low 

 
 
 
 
 
Market Price    $12.43    $13.67     (9.07)%    $14.28    $12.40 
Net Asset Value    $14.30    $15.49     (7.68)%    $15.96    $13.93 

 
 
 
 
 

The following unaudited charts show the portfolio composition and credit quality allocations of the Fund’s long-term investments:

Portfolio Composition         

 
 
    7/31/08    10/31/07 

 
 
City, County & State    27%    24% 
Education    22    20 
Transportation    15    14 
Lease Revenue    11    6 
Hospital    8    7 
Water & Sewer    7    10 
Power    4    6 
Housing    3    7 
Industrial & Pollution Control    3    5 
Sales Tax        1 

 
 

     Credit Quality Allocations5         

 
 
Credit Rating    7/31/08    10/31/07 

 
 
AAA/Aaa       48%    84% 
AA/Aa    35    5 
A/A    14    3 
BBB/Baa    3    8 

 
 
5 Using the higher of S&P’s or Moody’s ratings.     

ANNUAL REPORT

JULY 31, 2008

7


The Benefits and Risks of Leveraging

BlackRock MuniYield Florida Insured Fund, BlackRock MuniYield
Michigan Insured Fund, Inc., BlackRock MuniYield New Jersey Insured
Fund, Inc., and BlackRock MuniYield Pennsylvania Insured Fund (each a
“Fund” and, collectively, the “Funds”) utilize leverage to seek to enhance
the yield and NAV of their Common Shares. However, these objectives
cannot be achieved in all interest rate environments.

To leverage, the Funds issue Preferred Shares, which pay dividends at
prevailing short-term interest rates, and invest the proceeds in long-term
municipal bonds. The interest earned on these investments is paid
to Common Shareholders in the form of dividends, and the value of
these portfolio holdings is reflected in the per share net asset value of
each Fund’s Common Shares. However, in order to benefit Common
Shareholders, the yield curve must be positively sloped; that is, short-
term interest rates must be lower than long-term interest rates. At the
same time, a period of generally declining interest rates will benefit
Common Shareholders. If either of these conditions change, then the
risks of leveraging will begin to outweigh the benefits.

To illustrate these concepts, assume a fund’s Common Shares capital-
ization of $100 million and the issuance of Preferred Shares for an
additional $50 million, creating a total value of $150 million available
for investment in long-term municipal bonds. If prevailing short-term
interest rates are approximately 3% and long-term interest rates are
approximately 6%, the yield curve has a strongly positive slope. The fund
pays dividends on the $50 million of Preferred Shares based on the
lower short-term interest rates. At the same time, the fund’s total port-
folio of $150 million earns income based on long-term interest rates.

In this case, the dividends paid to Preferred Shareholders are signifi-
cantly lower than the income earned on the fund’s long-term invest-
ments, and therefore the Common Shareholders are the beneficiaries
of the incremental yield. However, if short-term interest rates rise, nar-
rowing the differential between short-term and long-term interest rates,
the incremental yield pickup on the Common Shares will be reduced or
eliminated completely. At the same time, the market value of the fund’s
Common Shares (that is, its price as listed on the New York Stock
Exchange) may, as a result, decline. Furthermore, if long-term interest
rates rise, the Common Shares’ NAV will reflect the full decline in the

price of the portfolio’s investments, since the value of the fund’s
Preferred Shares does not fluctuate. In addition to the decline in NAV,
the market value of the fund’s Common Shares may also decline.

In addition, the Funds may from time to time leverage their assets
through the use of tender option bond (“TOB”) programs. In a typical
TOB program, the Fund transfers one or more municipal bonds to a TOB
trust which issues short-term variable rate securities to third-party
investors and a residual interest to the Fund. The cash received by the
TOB trust from the issuance of the short-term securities (less transaction
expenses) is paid to the Fund, which invests the cash in additional port-
folio securities. The distribution rate on the short-term securities is reset
periodically (typically every seven days) through a remarketing of the
short-term securities. Any income earned on the bonds in the TOB trust,
net of expenses incurred by the TOB trust, that is not paid to the holders
of the short-term securities is paid to the Fund. In connection with man-
aging the Funds’ assets, the Funds’ investment advisor may at any time
retrieve the bonds out of the TOB trust typically within seven days. TOB
investments generally will provide the Fund with economic benefits in
periods of declining short-term interest rates, but expose the Fund to
risks during periods of rising short-term interest rates similar to those
associated with Preferred Shares issued by the Fund, as described
above. Additionally, fluctuations in the market value of municipal secu-
rities deposited into the TOB trust may adversely affect the Funds’ NAVs
per share. (See Note 1 of the Notes to Financial Statements for details
of municipal bonds transferred to TOB trusts.)

Under the Investment Company Act of 1940, the Funds are permitted
to issue Preferred Shares in an amount up to 50% of their total
managed assets at the time of issuance. Each Fund also anticipates
that its total economic leverage from Preferred Shares and TOBs will
not exceed 50% of its total managed assets. As of July 31, 2008,
BlackRock MuniYield Florida Insured Fund, BlackRock MuniYield
Michigan Insured Fund, Inc., BlackRock MuniYield New Jersey Insured
Fund, Inc. and BlackRock MuniYield Pennsylvania Insured Fund, had
leverage from Preferred Shares and TOBs of 42%, 42%, 38% and 41%
of their total managed assets, respectively.

Swap Agreements

The Funds may invest in swap agreements, which are over-the-counter
contracts in which one party agrees to make periodic payments based
on the change in market value of a specified bond, basket of bonds, or
index in return for periodic payments based on a fixed or variable inter-
est rate or the change in market value of a different bond, basket of
bonds or index. Swap agreements may be used to obtain exposure to a

bond or market without owning or taking physical custody of securities.
Swap agreements involve the risk that the party with whom each Fund
has entered into a swap will default on its obligation to pay the Fund
and the risk that the Fund will not be able to meet its obligation to pay
the other party to the agreement.

8 ANNUAL REPORT

JULY 31, 2008


Schedule of Investments July 31, 2008 BlackRock MuniYield Florida Insured Fund

(Percentages shown are based on Net Assets)

    Par     
Municipal Bonds    (000)             Value 

 
 
 
     Florida — 133.0%         

 
 
 
Alachua County, Florida, School Board, COP,         
 5.25%, 7/01/29 (a)    $ 1,300    $ 1,282,086 

 
 
Boynton Beach, Florida, Utility System Revenue         
 Refunding Bonds, 6.25%, 11/01/20 (b)(c)    700    816,676 

 
 
Brevard County, Florida, Health Facilities Authority,         
 Healthcare Facilities Revenue Bonds (Health         
 First Inc. Project), 5%, 4/01/36    2,000    1,798,420 

 
 
Broward County, Florida, Educational Facilities         
 Authority Revenue Bonds (Nova Southeastern         
 University), 5%, 4/01/31 (d)    1,720    1,665,493 

 
 
Broward County, Florida, HFA, S/F Mortgage         
 Revenue Refunding Bonds, AMT, Series E,         
 5.90%, 10/01/39 (e)(f)    1,100    1,100,055 

 
 
Broward County, Florida, School Board, COP, Series A,         
 5.25%, 7/01/33 (g)    2,000    1,986,160 

 
 
Daytona Beach, Florida, Utility System Revenue         
 Refunding Bonds, Series B, 5%, 11/15/27 (b)    1,000    945,480 

 
 
Deltona, Florida, Transportation Capital Improvement         
 Revenue Bonds, 5.125%, 10/01/26 (h)    1,000    1,006,230 

 
 
Emerald Coast, Florida, Utilities Authority, System         
 Revenue Bonds, 5.25%, 1/01/36 (b)    1,000    957,950 

 
 
Flagler County, Florida, Capital Improvement Revenue         
 Bonds, 5%, 10/01/35 (h)    1,000    963,960 

 
 
Florida HFA, Housing Revenue Bonds (Brittany         
 Rosemont Apartments), AMT, Series C-1,         
 6.75%, 8/01/14 (a)    910    910,983 

 
 
Florida Housing Finance Corporation, Homeowner         
 Mortgage Revenue Bonds, AMT:         
     Series 1, 6%, 7/01/39 (e)(f)    500    493,050 
     Series 11, 5.95%, 1/01/32 (g)    1,530    1,516,551 

 
 
Florida Housing Finance Corporation, Homeowner         
 Mortgage Revenue Refunding Bonds, AMT, Series 4,         
 6.25%, 7/01/22 (g)    300    313,404 

 
 
Florida State Board of Education (b):         
     Capital Outlay, GO, Public Education, Series B,         
     5%, 6/01/31    1,000    1,004,620 
     Lottery Revenue Bonds, Series A,         
     6%, 7/01/10 (i)    6,190    6,685,881 

 
 
Florida State Governmental Utility Authority,         
 Utility Revenue Bonds (Lehigh Utility System),         
 5.125%, 10/01/33 (a)    1,000    997,820 

 
 

    Par     
Municipal Bonds    (000)    Value 

 
 
 
     Florida (continued)         

 
 
 
Florida State Turnpike Authority, Turnpike Revenue         
 Bonds (Department of Transportation), Series B,         
 5%, 7/01/30    $ 1,860    $ 1,865,413 

 
 
Highlands County, Florida, Health Facilities Authority,         
 Hospital Revenue Bonds (Adventist Health System),         
 Series C, 5.25%, 11/15/36    1,000    949,160 

 
 
Hillsborough County, Florida, Aviation Authority,         
 Revenue Refunding Bonds, AMT, Series C,         
 5.75%, 10/01/26 (d)    1,000    1,023,880 

 
 
Hillsborough County, Florida, HFA, S/F         
 Mortgage Revenue Bonds, AMT, Series 1,         
 5.375%, 10/01/49 (e)(f)    1,340    1,273,027 

 
 
Hillsborough County, Florida, IDA, PCR, Refunding         
 (Tampa Electric Company Project), Series B,         
 5.15%, 9/01/25    500    507,115 

 
 
Hillsborough County, Florida, School Board, COP (h):         
     5.375%, 7/01/09 (i)    6,000    6,183,480 
     5%, 7/01/29    1,000    979,630 

 
 
Jacksonville, Florida, Economic Development         
 Commission, Health Care Facilities Revenue Bonds         
 (Mayo Clinic-Jacksonville) (h):         
     Series A, 5.50%, 11/15/36    1,000    1,012,230 
     Series B, 5.50%, 11/15/36    750    759,173 

 
 
Jacksonville, Florida, Economic Development         
 Commission, IDR (Metropolitan Parking Solutions         
 Project), AMT, 5.50%, 10/01/30 (j)    1,140    1,034,254 

 
 
Jacksonville, Florida, Guaranteed Entitlement         
 Revenue Refunding and Improvement Bonds,         
 5.25%, 10/01/32 (b)    1,455    1,462,450 

 
 
Jacksonville, Florida, HFA, Homeowner Mortgage         
 Revenue Refunding Bonds, AMT, Series A-1,         
 5.625%, 10/01/39 (e)(f)    990    972,111 

 
 
Jacksonville, Florida, Port Authority Revenue Bonds,         
 AMT, 6%, 11/01/38 (d)    2,550    2,593,631 

 
 
Jacksonville, Florida, Port Authority, Seaport Revenue         
 Bonds, AMT, 5.625%, 11/01/26 (h)    1,225    1,202,289 

 
 
Lakeland, Florida, Electric and Water Revenue         
 Refunding Bonds, Series A, 5%, 10/01/28 (h)    2,000    1,982,300 

 
 
Lee County, Florida, Airport Revenue Bonds, AMT,         
 Series A, 6%, 10/01/29 (g)    1,000    1,014,260 

 
 

Portfolio Abbreviations                 

 
 
 
 
 
To simplify the listings of portfolio holdings in the    AMT    Alternative Minimum Tax (subject to)    IDA    Industrial Development Authority 
Schedules of Investments, the names and descriptions    CABS    Capital Appreciation Bonds    IDR    Industrial Development Revenue Bonds 
of many of the securities have been abbreviated    COP    Certificates of Participation    M/F    Multi-Family 
according to the list on the right.    DRIVERS    Derivative Inverse Tax-Exempt Receipts    PCR    Pollution Control Revenue Bonds 
    EDA    Economic Development Authority    RIB    Residual Interest Bonds 
    EDR    Economic Development Revenue Bonds    S/F    Single Family 
    GO    General Obligation Bonds    SIFMA    Securities Industry and Financial 
    HDA    Housing Development Authority        Markets Association 
See Notes to Financial Statements.    HFA    Housing Finance Agency    VRDN    Variable Rate Demand Notes 

ANNUAL REPORT

JULY 31, 2008

9


Schedule of Investments (continued) BlackRock MuniYield Florida Insured Fund

(Percentages shown are based on Net Assets)

    Par     
Municipal Bonds    (000)    Value 

 
 
 
     Florida (continued)         

 
 
 
Lee County, Florida, Capital Revenue Bonds,         
 5.25%, 10/01/23 (a)    $ 2,285    $ 2,352,476 

 
 
Lee Memorial Health System, Florida, Hospital         
 Revenue Bonds, Series A, 5%, 4/01/32 (a)    2,000    1,929,920 

 
 
Leesburg, Florida, Capital Improvement Revenue         
 Bonds, 5.25%, 10/01/34 (b)    1,000    999,920 

 
 
Martin County, Florida, Utilities System Revenue         
 Bonds, 5.125%, 10/01/33 (a)    1,000    979,840 

 
 
Miami Beach, Florida, Water and Sewer Revenue         
 Bonds, 5.75%, 9/01/25 (a)    2,000    2,097,480 

 
 
Miami-Dade County, Florida, Aviation Revenue Bonds         
 (Miami International Airport), AMT, Series A,         
 6%, 10/01/24 (b)    5,000    5,036,050 

 
 
Miami-Dade County, Florida, Aviation Revenue         
 Refunding Bonds (Miami International Airport), AMT:         
     Series A, 5.25%, 10/01/41 (g)    1,200    1,142,112 
     Series A, 5.50%, 10/01/41 (g)    2,400    2,374,512 
     Series B, 5%, 10/01/19 (k)    4,200    4,068,708 

 
 
Miami-Dade County, Florida, Educational Facilities         
 Authority Revenue Bonds (University of Miami),         
 Series A, 5.75%, 4/01/10 (a)(i)    2,000    2,136,140 

 
 
Miami-Dade County, Florida, Expressway Authority,         
 Toll System Revenue Bonds, Series B (b):         
     5.25%, 7/01/27    1,000    1,002,470 
     5%, 7/01/33    2,400    2,320,272 

 
 
Miami-Dade County, Florida, HFA, Home Ownership         
 Mortgage Revenue Bonds, AMT, Series A,         
 5.55%, 10/01/49 (e)(f)    1,200    1,171,644 

 
 
Miami-Dade County, Florida, IDA, IDR (BAC         
 Funding Corporation Project), Series A,         
 5.375%, 10/01/30 (a)    1,655    1,674,248 

 
 
Miami-Dade County, Florida, School Board, COP,         
 Refunding, Series B (d):         
     5.25%, 5/01/25    1,000    1,014,400 
     5.25%, 5/01/28    1,760    1,766,512 
     5.25%, 5/01/30    1,415    1,422,386 

 
 
Miami-Dade County, Florida, School Board, COP,         
 Series A, 5.50%, 10/01/09 (g)(i)    2,000    2,085,000 

 
 
Miami-Dade County, Florida, Solid Waste System         
 Revenue Bonds, 5.25%, 10/01/30 (h)    1,865    1,843,198 

 
 
Miami-Dade County, Florida, Special Obligation         
 Revenue Bonds, Sub-Series A (h)(l):         
     5.186%, 10/01/31    4,375    1,142,662 
     5.203%, 10/01/33    5,735    1,328,742 

 
 
Orange County, Florida, Educational Facilities         
 Authority, Educational Facilities Revenue         
 Refunding Bonds (Rollins College Project),         
 5.50%, 12/01/32 (a)    4,765    4,850,436 

 
 
Orange County, Florida, Health Facilities Authority,         
 Hospital Revenue Bonds (Orlando Regional         
 Healthcare), 6%, 12/01/12 (i)    1,835    2,043,621 

 
 

    Par     
Municipal Bonds    (000)    Value 

 
 
 
     Florida (continued)         

 
 
 
Orange County, Florida, Health Facilities         
 Authority, Hospital Revenue Refunding Bonds         
 (Orlando Regional Healthcare), Series B,         
 5.25%, 12/01/29 (g)    $ 1,450    $ 1,467,124 

 
 
Orange County, Florida, Sales Tax Revenue Refunding         
 Bonds, Series A, 5.125%, 1/01/23 (b)    1,000    1,025,550 

 
 
Orange County, Florida, Tourist Development, Tax         
 Revenue Refunding Bonds, 5%, 10/01/29 (a)    2,190    2,131,286 

 
 
Orlando and Orange County, Florida, Expressway         
 Authority Revenue Bonds, Series B (a):         
     5%, 7/01/30    4,000    3,916,400 
     5%, 7/01/35    6,815    6,657,028 

 
 
Osceola County, Florida, Tourist Development Tax         
 Revenue Bonds, Series A, 5.50%, 10/01/27 (b)    1,100    1,108,041 

 
 
Palm Beach County, Florida, Criminal Justice         
 Facilities Revenue Bonds, 7.20%, 6/01/15 (b)    1,500    1,812,015 

 
 
Palm Beach County, Florida, School Board, COP:         
     Refunding, Series D, 5.25%, 8/01/21 (g)    2,000    2,093,820 
     Series A, 6%, 8/01/10 (b)(i)    5,000    5,391,000 

 
 
Panama City, Florida, Water and Sewer Revenue         
 Bonds, Series B, 5.25%, 10/01/22 (h)    1,500    1,561,545 

 
 
Polk County, Florida, Utility System Revenue Bonds,         
 5.25%, 10/01/22 (b)    1,000    1,028,600 

 
 
Port St. Lucie, Florida, Utility Revenue Bonds,         
 5.25%, 9/01/24 (h)    1,055    1,063,145 

 
 
Saint Johns County, Florida, Ponte Vedra Utility         
 System Revenue Bonds (g):         
     5%, 10/01/31    2,425    2,411,662 
     5%, 10/01/35    1,000    999,930 

 
 
Saint Johns County, Florida, Sales Tax Revenue         
 Bonds, Series A, 5.25%, 10/01/31 (a)    1,400    1,401,358 

 
 
Saint Lucie, Florida, West Services District, Utility         
 Revenue Bonds, 5.25%, 10/01/34 (h)    1,000    1,010,150 

 
 
Santa Rosa County, Florida, School Board, COP,         
 Refunding, Series 2, 5.25%, 2/01/26 (b)    2,000    2,004,920 

 
 
South Lake County, Florida, Hospital District         
 Revenue Bonds (South Lake Hospital Inc.),         
 5.80%, 10/01/34    1,000    1,004,180 

 
 
Tallahassee, Florida, Capital Revenue Bonds,         
 5%, 10/01/24 (g)    1,000    1,019,590 

 
 
University of Central Florida Athletics Association Inc.,         
 COP, Series A, 5.25%, 10/01/34 (b)    2,280    2,017,207 

 
 
University of Central Florida, COP (UCF Convocation         
 Center), Series A, 5%, 10/01/35 (b)    2,820    2,552,297 

 
 
Village Center Community Development District,         
 Florida, Recreational Revenue Bonds, Series A (h):         
     5.125%, 11/01/36    1,000    1,002,020 
     5.375%, 11/01/34    1,640    1,669,094 

 
 
Village Center Community Development District,         
 Florida, Utility Revenue Bonds (h):         
     5.125%, 10/01/28    4,030    4,075,337 
     5.25%, 10/01/23    2,585    2,688,219 

 
 

See Notes to Financial Statements.

10 ANNUAL REPORT

JULY 31, 2008


Schedule of Investments (concluded) BlackRock MuniYield Florida Insured Fund

(Percentages shown are based on Net Assets)

    Par     
Municipal Bonds    (000)    Value 

 
 
 
     Florida (concluded)         

 
 
 
Volusia County, Florida, IDA, Student Housing         
 Revenue Bonds (Stetson University Project),         
 Series A (m):         
     5%, 6/01/25    $ 1,000    $ 899,760 
     5%, 6/01/35    1,000    850,890 

 
 
 
     Puerto Rico — 1.9%         

 
 
 
Puerto Rico Public Buildings Authority, Government         
 Facilities Revenue Refunding Bonds, Series I,         
 5%, 7/01/36    1,000    943,990 

 
 
Puerto Rico Public Finance Corporation,         
 Commonwealth Appropriation Revenue Bonds,         
 Series E, 5.70%, 2/01/10 (i)    1,145    1,201,769 

 
 
Total Municipal Bonds — 134.9%        153,049,898 

 
 
 
 
 
Municipal Bonds Transferred to         
Tender Option Bond Trusts (n)         

 
 
 
     Florida         

 
 
 
Hillsborough County, Florida, Aviation Authority         
 Revenue Bonds, AMT, Series A, 5.5, 10/01/38 (d)    2,504    2,485,123 

 
 
Jacksonville Electric Authority, Florida, Saint John’s         
 River Power Park System Revenue Bonds, Issue         
 Three, Series 2, 5%, 10/01/37    1,289    1,284,847 

 
 
Jacksonville, Florida, Health Facilities Authority,         
 Hospital Revenue Bonds (Baptist Medical Center         
 Project), 5%, 8/15/37 (g)    2,880    2,823,725 

 
 
Jacksonville, Florida, Sales Tax Revenue Bonds,         
 5%, 10/01/27 (h)    1,319    1,334,749 

 
 
Lee County, Florida, HFA, S/F Mortgage Revenue         
 Bonds (Multi-County Program), AMT, Series A-2,         
 6, 9/01/40 (e)(f)    1,800    1,843,398 

 
 
Manatee County, Florida, HFA, Homeowner Revenue         
 Bonds, AMT, Series A, 5.9, 9/01/40 (e)(f)    1,005    985,433 

 
 
Miami-Dade County, Florida, Aviation Revenue         
 Bonds, AMT, Series A, 5%, 10/01/33 (g)    6,212    5,650,474 

 
 
Miami-Dade County, Florida, Health Facilities         
 Authority, Hospital Revenue Refunding Bonds         
 (Miami Children’s Hospital), Series A,         
 5.625%, 8/15/18 (a)    6,960    7,588,557 

 
 
Orlando, Florida, Senior Tourist Development Tax         
 Revenue Bonds (6th Cent Contract Payments),         
 Series A, 5.25%, 11/01/38 (d)    2,000    1,972,960 

 
 
Palm Beach County, Florida, School Board, COP,         
 Series A, 5%, 8/01/31 (g)    1,305    1,297,940 

 
 
South Broward, Florida, Hospital District, Hospital         
 Revenue Bonds, 5.625%, 5/01/32 (h)    4,000    4,407,320 

 
 
Total Municipal Bonds Transferred to Tender Option         
Bond Trusts — 27.9%        31,674,526 

 
 
Total Long-Term Investments         
(Cost — $186,495,649) — 162.8%        184,724,424 

 
 

Short-Term Securities    Shares    Value 

 
 
 
CMA Florida Municipal Money Fund, 1.75% (o)(p)    12,412,044    $ 12,412,044 

 
 
Total Short-Term Securities         
(Cost — $12,412,044) — 11.0%        12,412,044 

 
 
Total Investments (Cost — $198,907,693*) — 173.8%    197,136,468 
Liabilities in Excess of Other Assets — (2.6)%        (2,958,692) 
Liability for Trust Certificates, Including Interest         
   Expense and Fees Payable — (16.3)%        (18,462,062) 
Preferred Shares, at Redemption Value — (54.9)%        (62,266,457) 
       
Net Assets Applicable to Common Shares — 100.0%        $113,449,257 
   
 

* The cost and unrealized appreciation (depreciation) of investments as of July 31,
2008, as computed for federal income tax purposes, were as follows:

Aggregate cost    $ 180,584,649 
   
Gross unrealized appreciation    $ 3,035,667 
Gross unrealized depreciation    (4,834,332) 
   
Net unrealized depreciation    $ (1,798,665) 
   

(a) AMBAC Insured.
(b) FGIC Insured.
(c) Security is collateralized by Municipal or U.S. Treasury Obligations.
(d) Assured Guaranty Insured.
(e) FHLMC Collateralized.
(f) FNMA/GNMA Collateralized.
(g) FSA Insured.
(h) MBIA Insured.
(i) U.S. 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.
(j) ACA Insured.
(k) XL Capital Insured.
(l) Represents a zero-coupon bond. Rate shown reflects the effective yield at the
time of purchase.
(m) CIFG Insured.
(n) 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. See Note 1 of the Notes to Financial
Statements for details of municipal bonds transferred to tender option bond
trusts.
(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     
Affiliate    Activity    Income 

 
 
 
CMA Florida Municipal Money Fund    10,566,553    $90,469 

 
 

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

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2008

11


Schedule of Investments July 31, 2008 BlackRock MuniYield Michigan Insured Fund, Inc.

(Percentages shown are based on Net Assets)

    Par     
Municipal Bonds    (000)    Value 

 
 
 
     Michigan — 136.6%         

 
 
 
Adrian, Michigan, City School District, GO,         
 5%, 5/01/14 (a)(b)    $ 3,600    $ 3,919,932 

 
 
Bay City, Michigan, School District, School Building         
 and Site, GO, 5%, 5/01/31 (a)    3,725    3,731,817 

 
 
Birmingham, Michigan, City School District, School         
 Building and Site, GO, 5%, 11/01/33 (a)    1,000    1,002,050 

 
 
Central Montcalm, Michigan, Public Schools, GO,         
 5.90%, 5/01/09 (b)(c)    1,000    1,031,980 

 
 
Delta County, Michigan, Economic Development         
 Corporation, Environmental Improvement Revenue         
 Refunding Bonds (Mead Westvaco-Escanaba), AMT,         
 Series B, 6.45%, 4/15/12 (b)    1,500    1,657,770 

 
 
Detroit, Michigan, City School District, GO (School         
 Building and Site Improvement) (d):         
     Series A, 5.375%, 5/01/13 (b)    2,300    2,529,655 
     Series B, 5%, 5/01/28    3,100    3,057,654 

 
 
Detroit, Michigan, City School District, GO (School         
 Building and Site Improvement), Refunding,         
 Series A, 5%, 5/01/21 (a)    3,000    3,069,960 

 
 
Detroit, Michigan, Water Supply System         
 Revenue Bonds, DRIVERS, Series 200,         
 5.75%, 7/01/11 (b)(d)(e)    1,025    1,212,104 

 
 
Detroit, Michigan, Water Supply System Revenue         
 Bonds, Second Lien, Series B (c):         
     5%, 7/01/13 (b)    1,550    1,682,571 
     5%, 7/01/34    2,420    2,318,215 

 
 
Detroit, Michigan, Water Supply System Revenue         
 Bonds, Senior Lien, Series A:         
     5.875%, 1/01/10 (b)(d)    1,250    1,327,637 
     5.75%, 7/01/11 (b)    700    763,889 
     5%, 7/01/13 (c)    3,750    4,070,738 
     5%, 7/01/25 (a)    4,000    4,041,520 
     5%, 7/01/34 (c)    6,900    6,609,786 

 
 
Detroit, Michigan, Water Supply System Revenue         
 Bonds, Series B, 5.25%, 7/01/13 (b)(c)    11,790    12,931,744 

 
 
Detroit, Michigan, Water Supply System, Revenue         
 Refunding Bonds, 6.25%, 7/01/12 (d)(f)    1,180    1,269,302 

 
 
Dickinson County, Michigan, Economic Development         
 Corporation, Environmental Improvement Revenue         
 Refunding Bonds (International Paper Company         
 Project), Series A, 5.75%, 6/01/16    3,900    3,827,499 

 
 
Dickinson County, Michigan, Healthcare         
 System, Hospital Revenue Refunding Bonds,         
 5.80%, 11/01/24 (g)    3,100    2,961,585 

 
 
East Grand Rapids, Michigan, Public School District,         
 GO, 5%, 5/01/31 (a)    1,575    1,582,922 

 
 
Eastern Michigan University, General Revenue         
 Refunding Bonds (h):         
     6%, 6/01/10 (b)    590    635,159 
     6%, 6/01/20    435    459,164 

 
 
Eastern Michigan University Revenue Bonds,         
 Series B (b)(d):         
     5.60%, 6/01/10    1,500    1,587,195 
     5.625%, 6/01/10    1,310    1,386,740 

 
 

    Par     
Municipal Bonds    (000)    Value 

 
 
 
     Michigan (continued)         

 
 
 
Eaton Rapids, Michigan, Public Schools, School         
 Building and Site, GO (a):         
     5%, 5/01/14 (b)    $ 2,425    $ 2,640,510 
     5.25%, 5/01/20    1,325    1,399,942 
     5.25%, 5/01/21    1,675    1,760,844 
     5%, 5/01/26    1,700    1,722,746 
     5%, 5/01/29    1,175    1,180,734 

 
 
Flint, Michigan, Hospital Building Authority, Revenue         
 Refunding Bonds (Hurley Medical Center),         
 Series A (g):         
     5.375%, 7/01/20    615    553,937 
     6%, 7/01/20    1,375    1,311,915 

 
 
Frankenmuth, Michigan, School District, GO,         
 5.75%, 5/01/10 (b)(d)    1,000    1,060,050 

 
 
Gibraltar, Michigan, School District, GO (School         
 Building and Site) (d):         
     5%, 5/01/14 (b)    2,940    3,201,278 
     5%, 5/01/28    710    711,001 

 
 
Grand Blanc, Michigan, Community Schools, GO,         
 5.625%, 5/01/20 (d)    1,100    1,160,412 

 
 
Grand Rapids, Michigan, Building Authority Revenue         
 Bonds, Series A (h):         
     5.50%, 10/01/12 (b)    1,035    1,138,148 
     5.50%, 10/01/19    665    705,252 
     5.50%, 10/01/20    900    954,477 

 
 
Grand Valley State University, Michigan, Revenue         
 Bonds, 5.50%, 2/01/18 (d)    2,070    2,199,996 

 
 
Greater Detroit Resource Recovery Authority,         
 Michigan, Revenue Refunding Bonds, Series A,         
 6.25%, 12/13/08 (h)    11,250    11,422,125 

 
 
Gull Lake, Michigan, Community School District,         
 School Building and Site, GO, 5%, 5/01/14 (a)(b)    5,625    6,124,894 

 
 
Hancock, Michigan, Public Schools, School Building         
 and Site, GO, 5%, 5/01/33 (a)    2,025    2,021,983 

 
 
Harper Woods, Michigan, City School District, School         
 Building and Site, GO, Refunding (d):         
     5%, 5/01/14 (b)    4,345    4,731,140 
     5%, 5/01/34    430    421,426 

 
 
Hartland, Michigan, Consolidated School District, GO,         
 6%, 5/01/10 (b)(d)    6,825    7,263,916 

 
 
Hudsonville, Michigan, Public Schools, School         
 Building and Site, GO, 5%, 5/01/29 (a)    3,990    4,009,471 

 
 
Jenison, Michigan, Public Schools, School Building         
 and Site, GO, 5.50%, 5/01/19 (d)    1,575    1,654,727 

 
 
Kent, Michigan, Hospital Finance Authority, Hospital         
 Revenue Refunding Bonds (Butterworth Hospital),         
 Series A, 7.25%, 1/15/13 (c)    3,365    3,690,496 

 
 
Kent, Michigan, Hospital Finance Authority         
 Revenue Bonds (Spectrum Health), Series A,         
 5.50%, 7/15/11 (b)(c)    3,000    3,247,260 

 
 
Lansing, Michigan, Building Authority, GO, Series A,         
 5.375%,6/01/13 (b)(c)    1,510    1,662,812 

 
 

See Notes to Financial Statements.

12 ANNUAL REPORT

JULY 31, 2008


Schedule of Investments (continued) BlackRock MuniYield Michigan Insured Fund, Inc.

(Percentages shown are based on Net Assets)

        Par     
Municipal Bonds        (000)    Value 

 
 
 
 
     Michigan (continued)             

 
 
 
 
Lapeer, Michigan, Community Schools, School             
 Building and Site, GO, 5%, 5/01/37 (a)    $ 2,015    $ 1,999,646 

 
 
Michigan Higher Education Facilities Authority, Limited         
 Obligation Revenue Bonds (Hillsdale College             
 Project), 5%, 3/01/35        1,875    1,777,313 

 
 
 
Michigan Higher Education Facilities Authority, Limited         
 Obligation Revenue Refunding Bonds (College for             
 Creative Studies) (b):             
     5.85%, 6/01/12        1,235    1,353,856 
     5.90%, 6/01/12        1,145    1,257,244 

 
 
 
Michigan Higher Education Facilities Authority, Limited         
 Obligation Revenue Refunding Bonds (Hope             
 College), Series A, 5.90%, 4/01/32        2,250    2,241,248 

 
 
 
Michigan Higher Education Student Loan Authority,             
 Student Loan Revenue Bonds, AMT (h):             
     Series XVII-B, 5.40%, 6/01/18        2,500    2,355,900 
     Series XVII-Q, 5%, 3/01/31        3,000    2,389,860 

 
 
 
Michigan Municipal Bond Authority Revenue Bonds             
 (Local Government Loan Program), Group A,             
 5.50%, 11/01/20 (h)        1,065    1,114,171 

 
 
 
Michigan State Building Authority, Revenue Refunding         
 Bonds (Facilities Program) (c):             
     Series I, 5.50%, 10/15/18        2,500    2,645,550 
     Series II, 5%, 10/15/29        3,500    3,454,710 

 
 
 
Michigan State Building Authority, Revenue Refunding         
 Bonds, RIB, Series 517X, 8.11%, 10/15/10 (a)(d)(e)    1,250    1,408,850 

 
 
Michigan State, COP (h):             
     5.50%, 6/01/10 (b)        3,000    3,174,060 
     5.40%, 6/01/22 (f)        3,000    1,541,880 

 
 
 
Michigan State, Comprehensive Transportation             
 Revenue Refunding Bonds, 5%, 5/15/26 (a)        3,740    3,817,119 

 
 
 
Michigan State, HDA, Limited Obligation M/F Housing         
 Revenue Bonds, AMT (i):             
     (Deaconess Towers Apartments),             
     5.25%, 2/20/48        1,000    865,120 
     (Williams Pavilion Apartments),             
     4.75%, 4/20/37        4,050    3,275,681 

 
 
 
Michigan State, HDA, Rental Housing Revenue             
 Bonds, AMT:             
     Series A, 5.30%, 10/01/37 (c)        200    178,796 
     Series D, 5%, 4/01/26 (a)        3,310    3,036,594 

 
 
 
Michigan State Hospital Finance Authority, Hospital             
 Revenue Bonds (Mid-Michigan Obligation Group),             
 Series A, 5.50%, 4/15/18 (h)        2,530    2,619,309 

 
 
 
Michigan State Hospital Finance Authority, Hospital             
 Revenue Refunding Bonds:             
     (Crittenton Hospital), Series A, 5.625%, 3/01/27    2,200    2,212,650 
     (Oakwood Obligated Group), Series A,             
     5%, 7/15/25        4,100    3,794,714 
     (Oakwood Obligated Group), Series A,             
     5%, 7/15/37        630    546,254 
     (Sparrow Obligated Group), 5%, 11/15/31        3,100    2,889,882 

 
 
 

    Par     
Municipal Bonds    (000)    Value 

 
 
 
     Michigan (continued)         

 
 
 
Michigan State Hospital Finance Authority Revenue         
 Bonds:         
     (McLaren Health Care Corporation), Series C,         
     5%, 8/01/35    $ 1,000    $ 916,970 
     (Mid-Michigan Obligor Group), Series A,         
     5%, 4/15/36    1,750    1,573,513 

 
 
Michigan State Hospital Finance Authority, Revenue         
 Refunding Bonds:         
     (Ascension Health Credit), Series A,         
     6.25%, 11/15/09 (b)(c)    2,500    2,645,450 
     (Henry Ford Health System), Series A,         
     5.25%, 11/15/46    2,500    2,243,000 
     (McLaren Health Care Corporation),         
     5.75%, 5/15/38    4,000    3,899,480 
     (Mercy Health Services), Series X,         
     6%, 8/15/09 (b)(c)    2,000    2,089,060 
     (Saint John Hospital), Series A,         
     6%, 5/15/13 (f)(h)    3,000    3,115,020 
     (Trinity Health Credit Group), Series D,         
     5%, 8/15/34    3,100    2,982,107 
     (Trinity Health Credit), Series C,         
     5.375%, 12/01/23    1,000    1,016,710 
     (Trinity Health Credit), Series C,         
     5.375%, 12/01/30    3,755    3,787,143 
     (Trinity Health), Series A, 6%, 12/01/27 (h)    6,400    6,756,480 

 
 
Michigan State Strategic Fund, Limited Obligation         
 Revenue Refunding Bonds:         
     (Detroit Edison Company Pollution Control         
     Project), AMT, Series A, 5.55%, 9/01/29 (c)    10,250    9,259,645 
     (Detroit Edison Company Pollution Control         
     Project), Series AA, 6.95%, 5/01/11 (d)    6,000    6,529,080 

 
 
Monroe County, Michigan, Economic Development         
 Corporation, Limited Obligation Revenue         
 Refunding Bonds (Detroit Edison Co. Project),         
 Series AA, 6.95%, 9/01/22 (d)    15,000    17,813,250 

 
 
Montrose Township, Michigan, School District, GO,         
 6.20%, 5/01/17 (c)    1,000    1,159,960 

 
 
Muskegon Heights, Michigan, Water         
 System Revenue Bonds, Series A,         
 5.625%, 11/01/10 (b)(c)    1,830    1,961,193 

 
 
Norway Vulcan, Michigan, Area Schools, GO,         
 5.90%, 5/01/09 (b)(d)    1,100    1,135,255 

 
 
Oak Park, Michigan, Street Improvement, GO,         
 5%, 5/01/30 (c)    500    491,500 

 
 
Orchard View, Michigan, Schools, School Building         
 and Site, GO, 5%, 11/01/13 (b)(c)    5,320    5,788,797 

 
 
Pennfield, Michigan, School District, School         
 Building and Site, GO,5%, 5/01/14 (b)(d)    1,370    1,491,752 

 
 
Plainwell, Michigan, Community Schools,         
 School District, School Building and Site, GO,         
 5.50%, 11/01/12 (a)(b)    1,000    1,101,110 

 
 
Plymouth-Canton, Michigan, Community School         
 District, GO, 5%, 5/01/29 (d)    3,905    3,899,689 

 
 

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2008

13


Schedule of Investments (continued) BlackRock MuniYield Michigan Insured Fund, Inc.

(Percentages shown are based on Net Assets)

        Par     
Municipal Bonds        (000)    Value 

 
 
 
 
     Michigan (concluded)             

 
 
 
 
Ravenna, Michigan, Public Schools, School Building             
 and Site, GO, 5%, 5/01/38 (a)    $ 1,520    $ 1,508,250 

 
 
Reed, Michigan, City Public Schools, School Building         
 and Site, GO, 5%, 5/01/14 (a)(b)        1,425    1,551,640 

 
 
 
Saginaw, Michigan, Hospital Finance Authority,             
 Revenue Refunding Bonds (Covenant Medical             
 Center), Series E, 5.625%, 7/01/13 (c)        2,500    2,594,050 

 
 
 
Saginaw Valley State University, Michigan, General             
 Revenue Refunding Bonds, 5%, 7/01/24 (d)        2,100    2,086,245 

 
 
 
Saint Clair County, Michigan, Economic Revenue             
 Refunding Bonds (Detroit Edison Co. Project),             
 Series AA, 6.40%, 8/01/24 (h)        17,800    18,198,898 

 
 
 
South Haven, Michigan, Public Schools, GO,             
 5%, 5/01/13 (b)        1,350    1,462,604 

 
 
 
Southfield, Michigan, Library Building Authority, GO,             
 5.50%, 5/01/10 (b)(c)        1,300    1,372,514 

 
 
 
Southfield, Michigan, Public Schools, School Building         
 and Site, GO, Series A (a)(b):             
     5%, 5/01/14        3,500    3,811,045 
     5.25%, 5/01/14        2,900    3,195,423 

 
 
 
Sparta, Michigan, Area Schools, School Building and         
 Site, GO, 5%, 5/01/14 (b)(d)        1,325    1,442,753 

 
 
 
Thornapple Kellogg School District, Michigan, GO,             
 Refunding, 5%, 5/01/32 (c)        2,500    2,475,800 

 
 
 
Waverly, Michigan, Community School, GO,             
 5.50%, 5/01/10 (b)(d)        1,100    1,157,277 

 
 
 
Wayne Charter County, Michigan, Airport Revenue             
 Bonds (Detroit Metropolitan Wayne County), AMT,             
 Series A, 5.375%, 12/01/15 (c)        10,660    10,694,858 

 
 
 
Wayne Charter County, Michigan, Detroit Metropolitan         
 Airport, GO, Airport Hotel, Series A, 5%, 12/01/30 (c)    1,750    1,715,280 

 
 
Wayne County, Michigan, Airport Authority Revenue             
 Bonds (Detroit Metropolitan Wayne County Airport),         
 AMT (c):             
     5.25%, 12/01/25        7,525    7,013,375 
     5.25%, 12/01/26        6,300    5,844,447 
     5%, 12/01/34        9,160    8,009,045 

 
 
 
Wayne County, Michigan, Airport Authority, Revenue             
 Refunding Bonds, AMT (j):             
     5.75%, 12/01/25        4,000    4,093,520 
     5.75%, 12/01/26        1,000    1,021,790 

 
 
 
West Bloomfield, Michigan, School District, GO,             
 Refunding (d):             
     5.50%, 5/01/17        1,710    1,826,451 
     5.50%, 5/01/18        1,225    1,296,626 

 
 
 
Zeeland, Michigan, Public Schools, School Building             
 and Site, GO, 5%, 5/01/29 (c)        1,600    1,606,224 
           
            352,204,767 

 
 
 

    Par     
Municipal Bonds    (000)    Value 

 
 
 
     Puerto Rico — 4.2%         

 
 
 
Puerto Rico Commonwealth Highway and         
 Transportation Authority, Highway Revenue         
 Refunding Bonds, Series CC, 5.50%, 7/01/31 (j)    $ 4,000    $ 4,236,960 

 
 
Puerto Rico Municipal Finance Agency Revenue         
 Bonds, Series A, 5%, 8/01/27 (a)    2,790    2,797,003 

 
 
Puerto Rico Sales Tax Financing Corporation, Sales         
 Tax Revenue Refunding Bonds, Series A (c)(k):         
     5.20%, 8/01/43    12,500    1,673,248 
     4.99%, 8/01/46    20,000    2,236,600 
       
        10,943,811 

 
 
Total Municipal Bonds — 140.8%        363,148,578 

 
 
 
 
 
Municipal Bonds Transferred to         
Tender Option Bond Trusts (l)         

 
 
 
     Michigan         

 
 
 
Detroit, Michigan, Water Supply System, Revenue         
 Refunding Bonds, Second Lien, Series C,         
 5%, 7/01/29 (a)    10,569    10,527,554 

 
 
Detroit, Michigan, Water Supply System, Senior Lien         
 Revenue Bonds, Series A, 5.75%, 7/01/11 (b)(d)    6,000    6,547,620 

 
 
Lakewood, Michigan, Public Schools, School Building         
 and Site, GO, 5%, 5/01/37 (a)    6,775    6,469,482 

 
 
Michigan State Building Authority, Revenue         
 Refunding Bonds (Facilities Program), Series I,         
 5.50%, 10/15/10 (a)    19,780    21,036,821 

 
 
Portage, Michigan, Public Schools, School Building         
 and Site, GO, 5%, 5/01/31 (a)    4,650    4,685,340 

 
 
Saginaw Valley State University, Michigan, Revenue         
 Refunding Bonds, 5%, 7/01/31 (a)    7,500    7,517,100 

 
 
Wayne County, Michigan, Airport Authority, Revenue         
 Refunding Bonds, AMT, 5.375%, 12/01/32 (j)    8,700    8,508,687 

 
 
Wayne State University, Michigan, University Revenue         
 Refunding Bonds, 5%, 11/15/35 (a)    12,207    12,134,001 

 
 
Total Municipal Bonds Transferred to Tender Option         
Bond Trusts — 30.0%        77,426,605 

 
 
Total Long-Term Investments         
(Cost — $437,658,333) — 170.8%        440,575,183 

 
 
 
 
 
Short-Term Securities    Shares     

 
 
CMA Michigan Municipal Money Fund, 1.64% (m)(n)    4,567,533    4,567,533 

 
 
Total Short-Term Securities         
(Cost — $4,567,533) — 1.8%        4,567,533 

 
 
Total Investments (Cost — $442,225,866*) — 172.6%    445,142,716 
Other Assets Less Liabilities — 0.2%        472,962 
Liability for Trust Certificates, Including Interest         
   Expense and Fees Payable — (16.7)%        (43,122,738) 
Preferred Shares, at Redemption Value — (56.1)%        (144,686,735) 
       
Net Assets Applicable to Common Shares — 100.0%        $257,806,205 
       

See Notes to Financial Statements.

14 ANNUAL REPORT

JULY 31, 2008


Schedule of Investments (concluded) BlackRock MuniYield Michigan Insured Fund, Inc.

* The cost and unrealized appreciation (depreciation) of investments as of July 31,
2008, as computed for federal income tax purposes, were as follows:

Aggregate cost    $ 399,792,371 
   
Gross unrealized appreciation    $ 12,821,704 
Gross unrealized depreciation    (10,427,050) 
   
Net unrealized appreciation    $ 2,394,654 
   

(a) FSA Insured.
(b) U.S. 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.
(c) MBIA Insured.
(d) FGIC Insured.
(e) Variable rate security. Rate shown is as of report date. Maturity shown is the
final maturity date.
(f) Security is collateralized by Municipal or U.S. Treasury Obligations.
(g) ACA Insured.
(h) AMBAC Insured.
(i) GNMA Collateralized.
(j) Assured Guaranty Insured.
(k) Represents a zero-coupon bond. Rate shown reflects the effective yield at the
time of purchase.
(l) 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. See Note 1 of the Notes to Financial
Statements for details of municipal bonds transferred to tender option bond
trusts.
(m) 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     
Affiliate    Activity    Income 

 
 
 
CMA Michigan Municipal Money Fund    645,977    $170,765 

 
 

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

  See Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2008 15


Schedule of Investments July 31, 2008 BlackRock MuniYield New Jersey Insured Fund, Inc.

(Percentages shown are based on Net Assets)

    Par     
Municipal Bonds    (000)             Value 

 
 
 
     New Jersey — 134.2%         

 
 
 
Delaware River and Bay Authority Revenue Bonds,         
 5%, 1/01/33 (a)    $ 1,000    $ 983,340 

 
 
Delaware River Port Authority of Pennsylvania and New         
 Jersey Revenue Bonds, 6%, 1/01/18 (b)    5,000    5,201,400 

 
 
Essex County, New Jersey, Improvement Authority,         
 Airport Revenue Refunding Bonds, AMT,         
 4.75%, 11/01/32 (a)    1,000    887,900 

 
 
Garden State Preservation Trust of New Jersey,         
 Capital Appreciation Revenue Bonds, Series B,         
 5.12%, 11/01/23 (b)(c)    6,925    3,231,967 

 
 
Garden State Preservation Trust of New Jersey, Open         
 Space and Farmland Preservation Revenue Bonds,         
 Series A, 5.80%, 11/01/22 (b)    2,605    2,891,368 

 
 
Gloucester County, New Jersey, Improvement Authority,         
 Solid Waste Resource Recovery, Revenue Refunding         
 Bonds (Waste Management Inc. Project), Series A,         
 6.85%, 12/01/29    2,000    2,064,380 

 
 
Hopatcong, New Jersey, GO, Sewer Refunding Bonds,         
 4.50%, 8/01/33 (d)    750    711,173 

 
 
Hudson County, New Jersey, COP, Refunding,         
 6.25%, 12/01/16 (a)    1,000    1,149,950 

 
 
Hudson County, New Jersey, Improvement Authority,         
 Capital Appreciation Revenue Bonds, Series A-1,         
 4.46%, 12/15/32 (a)(c)    1,000    258,780 

 
 
Hudson County, New Jersey, Improvement Authority,         
 Facility Lease Revenue Refunding Bonds (Hudson         
 County Lease Project), 5.375%, 10/01/24 (e)    7,500    7,522,200 

 
 
Jackson Township, New Jersey, School District, GO,         
 5%, 4/15/12 (e)(f)    5,200    5,589,740 

 
 
Jersey City, New Jersey, Sewer Authority, Sewer         
 Revenue Refunding Bonds, 6.25%, 1/01/14 (d)    3,750    4,091,550 

 
 
Middlesex County, New Jersey, COP, Refunding,         
 5%, 8/01/22 (a)    3,000    3,043,350 

 
 
Monmouth County, New Jersey, Improvement Authority,         
 Governmental Loan Revenue Refunding Bonds (d):         
     5%, 12/01/11 (f)    3,045    3,263,997 
     5.20%, 12/01/14    240    250,320 
     5.25%, 12/01/15    765    799,096 
     5%, 12/01/17    605    631,560 
     5%, 12/01/18    545    566,653 
     5%, 12/01/19    560    578,575 

 
 
Morristown, New Jersey, Parking Authority Revenue         
 Bonds, 4.50%, 8/01/37 (a)    1,355    1,234,500 

 
 
New Jersey EDA, Cigarette Tax Revenue Bonds:         
     5.625%, 6/15/19    1,060    1,036,765 
     5.75%, 6/15/29 (g)    785    767,228 
     5.50%, 6/15/31 (g)    225    218,153 
     5.75%, 6/15/34 (g)    465    453,361 

 
 
New Jersey EDA, First Mortgage Revenue         
 Bonds (Fellowship Village Project), Series C,         
 5.50%, 1/01/28    1,000    931,140 

 
 

    Par     
Municipal Bonds    (000)    Value 

 
 
 
     New Jersey (continued)         

 
 
 
New Jersey EDA, First Mortgage Revenue         
 Refunding Bonds (Fellowship Village), Series A,         
 5.50%, 1/01/18    $ 1,700    $ 1,681,487 

 
 
New Jersey EDA, Motor Vehicle Surcharge Revenue         
 Bonds, Series A (a):         
     4.95%, 7/01/21 (c)    2,325    1,213,162 
     5%, 7/01/29    3,900    3,835,260 
     5.25%, 7/01/33    8,500    8,616,025 
     5%, 7/01/34    1,765    1,727,282 

 
 
New Jersey EDA, School Facilities Construction         
 Revenue Bonds, Series U, 5%, 9/01/37 (d)    1,000    1,003,580 

 
 
New Jersey EDA, School Facilities Construction,         
 Revenue Refunding Bonds, Series K,         
 5.25%, 12/15/17 (e)    1,500    1,602,030 

 
 
New Jersey EDA, Water Facilities Revenue Bonds         
 (New Jersey-American Water Company, Inc.         
 Project), AMT, Series A:         
     5.25%, 11/01/32 (d)    1,000    907,080 
     6.875%, 11/01/34 (e)    5,070    5,127,595 

 
 
New Jersey EDA, Water Facilities Revenue Refunding         
 Bonds (United Water of New Jersey, Inc.),         
 Series B, 4.50%, 11/01/25 (d)    1,000    966,150 

 
 
New Jersey Health Care Facilities Financing Authority         
 Revenue Bonds:         
     (Meridian Health), Series I, 5%, 7/01/38 (h)    750    745,358 
     (Somerset Medical Center), 5.50%, 7/01/33    1,125    907,088 
     (South Jersey Hospital System), 6%, 7/01/12 (f)    4,000    4,427,720 

 
 
New Jersey Health Care Facilities Financing Authority,         
 Revenue Refunding Bonds:         
     (Atlantic City Medical Center),         
     5.75%, 7/01/12 (f)    525    576,335 
     (Atlantic City Medical Center),         
     6.25%, 7/01/12 (f)    290    325,032 
     (Atlantic City Medical Center), 6.25%, 7/01/17    325    348,576 
     (Atlantic City Medical Center), 5.75%, 7/01/25    790    805,460 
     (Hackensack University Medical Center),         
     5.25%, 1/01/36 (h)    3,500    3,562,300 
     (Meridian Health System Obligation Group),         
     5.25%, 7/01/19 (b)    2,250    2,320,583 

 
 
New Jersey Sports and Exposition Authority, Luxury         
 Tax Revenue Refunding Bonds (Convention         
 Center) (a):         
     5.50%, 3/01/21    1,540    1,686,362 
     5.50%, 3/01/22    1,000    1,093,300 

 
 
New Jersey State Educational Facilities Authority         
 Revenue Bonds:         
     (Montclair State University), Series A,         
     5%, 7/01/21 (d)    1,600    1,654,336 
     (Rowan University), Series C, 5%, 7/01/14 (a)(f)    1,185    1,295,774 

 
 

  See Notes to Financial Statements.

16 ANNUAL REPORT

JULY 31, 2008


Schedule of Investments (continued) BlackRock MuniYield New Jersey Insured Fund, Inc.

(Percentages shown are based on Net Assets)

        Par     
Municipal Bonds        (000)    Value 

 
 
 
 
     New Jersey (continued)             

 
 
 
 
New Jersey State Educational Facilities Authority,             
 Revenue Refunding Bonds:             
     (Montclair State University), Series J,             
     4.25%, 7/01/30 (a)    $ 2,895    $ 2,549,424 
     (Montclair State University), Series L,             
     5%, 7/01/14 (a)(f)        3,185    3,482,734 
     (Ramapo College), Series I, 4.25%, 7/01/31 (d)    1,250    1,095,050 
     (Ramapo College), Series I, 4.25%, 7/01/36 (d)    3,890    3,348,707 
     (Rowan University), Series B, 5%, 7/01/26 (h)        2,575    2,645,864 
     (Rowan University), Series C, 5%, 7/01/31 (e)        325    313,810 
     (Stevens Institute of Technology), Series A,             
     5%, 7/01/34        1,500    1,314,615 
     (William Paterson University), Series E,             
     5%, 7/01/21 (i)        1,725    1,733,746 

 
 
 
New Jersey State, GO, Refunding, Series H,             
 5.25%, 7/01/15 (b)        3,500    3,871,000 

 
 
 
New Jersey State Higher Education Assistance             
 Authority, Student Loan Revenue Bonds, AMT,             
 Series A, 5.30%, 6/01/17 (d)        3,565    3,602,646 

 
 
 
New Jersey State Housing and Mortgage Finance             
 Agency, Home Buyer Revenue Bonds, AMT,             
 Series CC, 5.80%, 10/01/20 (a)        2,640    2,700,746 

 
 
 
New Jersey State Housing and Mortgage Finance             
 Agency, M/F Revenue Bonds, AMT, Series A,             
 4.90%, 11/01/35 (e)        1,000    837,970 

 
 
 
New Jersey State Housing and Mortgage Finance             
 Agency, S/F Housing Revenue Refunding Bonds,             
 AMT, Series T, 4.70%, 10/01/37        500    402,910 

 
 
 
New Jersey State Transportation Trust Fund Authority,         
 Transportation System Revenue Bonds:             
     Series A, 5%, 12/15/32 (d)        730    731,095 
     Series C, 4.83%, 12/15/32 (b)(c)        4,750    1,292,000 
     Series C, 5.05%, 12/15/35 (c)(d)        2,760    622,408 
     Series D, 5%, 6/15/19 (b)        3,240    3,387,290 

 
 
 
New Jersey State Transportation Trust Fund Authority,         
 Transportation System Revenue Refunding Bonds:             
     Series A, 5.25%, 12/15/20 (b)        4,250    4,604,705 
     Series B, 5.50%, 12/15/21 (a)        3,600    3,950,964 

 
 
 
New Jersey State Turnpike Authority, Turnpike Revenue         
 Bonds:             
     Series B, 5.15%, 1/01/35 (c)(d)        3,005    2,160,355 
     VRDN, Series C-3, 2.75%, 1/01/24 (b)(j)        650    650,000 

 
 
 
Newark, New Jersey, Housing Authority, Port Authority-         
 Port Newark Marine Terminal, Additional Rent-Backed         
 Revenue Refunding Bonds (City of Newark             
 Redevelopment Projects), 4.375%, 1/01/37 (a)        3,600    3,255,408 

 
 
 
North Hudson Sewage Authority, New Jersey, Sewer             
 Revenue Refunding Bonds, 5.125%, 8/01/20 (a)    1,710    1,831,881 

 
 
Perth Amboy, New Jersey, GO (Convertible CABS),             
 Refunding, 4.75%, 7/01/35 (b)(c)        1,250    1,017,713 

 
 
 
Port Authority of New York and New Jersey, Consolidated         
 Revenue Bonds, 93rd Series, 6.125%, 6/01/94        1,000    1,120,800 

 
 
 

        Par     
Municipal Bonds        (000)    Value 

 
 
 
 
     New Jersey (concluded)             

 
 
 
 
Port Authority of New York and New Jersey,             
 Consolidated Revenue Refunding Bonds, AMT:             
     138th Series, 4.75%, 12/01/34 (b)    $ 1,000    $ 924,600 
     146th Series, 4.25%, 12/01/32 (b)        5,000    4,176,800 
     152nd Series, 5.25%, 11/01/35        2,325    2,314,794 

 
 
 
Rahway Valley Sewerage Authority, New Jersey, Sewer             
 Revenue Bonds, CABS, Series A (a)(c):             
     5.375%, 9/01/26        4,100    1,563,740 
     5.25%, 9/01/33        2,350    590,931 

 
 
 
Salem County, New Jersey, Improvement Authority             
 Revenue Bonds (Finlaw State Office Building             
 Project) (b):             
     5.375%, 8/15/28        1,250    1,320,013 
     5.25%, 8/15/38        700    720,797 

 
 
 
Tobacco Settlement Financing Corporation of             
 New Jersey, Asset-Backed Revenue Bonds,             
 7%, 6/01/13 (f)        1,715    2,011,060 

 
 
 
Union County, New Jersey, Utilities Authority, Senior             
 Lease Revenue Refunding Bonds (Ogden Martin             
 System of Union, Inc.), AMT, Series A (d):             
     5.375%, 6/01/17        1,590    1,594,516 
     5.375%, 6/01/18        1,670    1,672,154 

 
 
 
University of Medicine and Dentistry of New Jersey,             
 Revenue Bonds, Series A (d):             
     5.50%, 12/01/18        570    600,427 
     5.50%, 12/01/19        1,145    1,206,120 
     5.50%, 12/01/20        1,130    1,180,398 
     5.50%, 12/01/21        865    898,112 
           
            168,084,624 

 
 
 
 
     Puerto Rico — 12.0%             

 
 
 
 
Puerto Rico Commonwealth Aqueduct and Sewer             
 Authority, Senior Lien Revenue Bonds, Series A,             
 5.125%, 7/01/47 (h)        3,425    3,365,850 

 
 
 
Puerto Rico Commonwealth Highway and             
 Transportation Authority, Highway Revenue             
 Refunding Bonds, Series CC, 5.50%, 7/01/31 (h)        1,185    1,255,199 

 
 
 
Puerto Rico Commonwealth Infrastructure Financing             
 Authority, Special Tax and Capital Appreciation             
 Revenue Bonds, Series A (c):             
     4.48%, 7/01/30 (e)        2,750    760,760 
     4.34%, 7/01/37 (d)        2,250    417,803 

 
 
 
Puerto Rico Electric Power Authority, Power Revenue             
 Bonds, Series RR, 5%, 7/01/28 (k)        2,000    1,907,720 

 
 
 
Puerto Rico Industrial, Tourist, Educational, Medical             
 and Environmental Control Facilities Revenue Bonds,         
 Series A:             
     (Hospital de la Concepcion), 6.125%, 11/15/30    4,220    4,384,496 
     (University Plaza Project), 5%, 7/01/33 (a)        3,000    2,908,440 
           
            15,000,268 

 
 
 
Total Municipal Bonds — 146.2%            183,084,892 

 
 
 

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2008

17


Schedule of Investments (concluded) BlackRock MuniYield New Jersey Insured Fund, Inc.

(Percentages shown are based on Net Assets)

Municipal Bonds Transferred to        Par     
Tender Option Bond Trusts (l)        (000)    Value 

 
 
 
 
     New Jersey             

 
 
 
 
New Jersey State Educational Facilities Authority,             
 Revenue Refunding Bonds (College of New Jersey),         
 Series D, 5%, 7/01/35 (b)    $ 3,720    $ 3,751,694 

 
 
New Jersey State Housing and Mortgage Finance             
 Agency, Capital Fund Program Revenue Bonds,             
 Series A (b):             
     4.70%, 11/01/25        4,425    4,372,444 
     5%, 5/01/27        1,977    2,018,106 
     5%, 11/01/28        3,300    3,767,907 

 
 
 
Port Authority of New York and New Jersey,             
 Consolidated Revenue Refunding Bonds, AMT,             
 152nd Series, 5.75%, 11/01/30        1,995    2,084,117 

 
 
 
Total Municipal Bonds Transferred to Tender Option         
Bond Trusts — 12.8%            15,994,268 

 
 
 
Total Long-Term Investments             
(Cost — $198,735,322) — 159.0%            199,079,160 

 
 
 
 
 
 
Short-Term Securities        Shares     

 
 
 
CMA New Jersey Municipal Money Fund,             
 1.75% (m)(n)        798,701    798,701 

 
 
 
Total Short-Term Securities (Cost — $798,701) — 0.6%        798,701 

 
 
Total Investments (Cost — $199,534,023*) — 159.6%        199,877,861 
Other Assets Less Liabilities — 0.9%            1,078,412 
Liability for Trust Certificates, Including Interest             
   Expense and Fees Payable — (8.0)%            (9,990,427) 
Preferred Shares, at Redemption Value — (52.5)%            (65,732,699) 
           
Net Assets Applicable to Common Shares — 100.0%        $125,233,147 
   
 

* The cost and unrealized appreciation (depreciation) of investments as of July 31,
2008, as computed for federal income tax purposes, were as follows:

Aggregate cost    $189,806,366 
   
Gross unrealized appreciation    $ 5,187,586 
Gross unrealized depreciation    (5,073,171) 
   
Net unrealized appreciation    $ 114,415 
   

(a) MBIA Insured.
(b) FSA Insured.
(c) Represents a zero-coupon bond. Rate shown reflects the effective yield at the
time of purchase.
(d) AMBAC Insured.
(e) FGIC Insured.
(f) U.S. 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.
(g) Radian Insured.
(h) Assured Guaranty Insured.
(i) XL Capital Insured.
(j) Variable rate security. Rate shown is as of report date. Maturity shown is the
final maturity date.
(k) CIFG Insured.

(l) 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. See Note 1 of the Notes to Financial
Statements for details of municipal bonds transferred to tender option bond
trusts.
(m) Investments in companies considered to be an affiliate of the Fund, for purpos-
es of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

    Net     
Affiliate    Activity    Income 

 
 
 
CMA New Jersey Municipal Money Fund    709,508    $9,451 

 
 

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

  See Notes to Financial Statements.

18 ANNUAL REPORT

JULY 31, 2008


Schedule of Investments July 31, 2008 BlackRock MuniYield Pennsylvania Insured Fund

(Percentages shown are based on Net Assets)

        Par     
Municipal Bonds        (000)    Value 

 
 
 
 
     Pennsylvania — 122.7%             

 
 
 
 
Allegheny County, Pennsylvania, GO, Series C-60,         
 5%, 11/01/32 (a)    $ 4,650    $ 4,666,740 

 
 
Allegheny County, Pennsylvania, Hospital Development         
 Authority, Health Center Revenue Bonds (University         
 of Pittsburgh Medical Center Health System),         
 Series B, 6%, 7/01/26 (b)        2,000    2,278,360 

 
 
 
Allegheny County, Pennsylvania, Residential Finance         
 Authority, S/F Mortgage Revenue Bonds, AMT,         
 Series TT, 5%, 5/01/35 (c)        955    821,692 

 
 
 
Allegheny County, Pennsylvania, Sanitation Authority,         
 Sewer Revenue Refunding Bonds, Series A,         
 5%, 12/01/30 (b)        5,000    4,874,900 

 
 
 
Chambersburg, Pennsylvania, Area School District,         
 GO (d):             
     5.25%, 3/01/26        2,115    2,161,297 
     5.25%, 3/01/27        2,500    2,548,725 
     5.25%, 3/01/29        4,000    4,061,240 

 
 
 
Connellsville, Pennsylvania, Area School District, GO,         
 Series B, 5%, 11/15/37 (a)        1,000    999,920 

 
 
 
Delaware County, Pennsylvania, IDA Revenue Bonds         
 (Pennsylvania Suburban Water Company Project),         
 AMT, Series A, 5.15%, 9/01/32 (e)        5,500    5,041,520 

 
 
 
Delaware County, Pennsylvania, IDA, Water Facilities         
 Revenue Refunding Bonds (Aqua Pennsylvania, Inc.         
 Project), AMT, Series B, 5%, 11/01/36 (d)    4,770    4,230,420 

 
 
Delaware Valley Regional Finance Authority,             
 Pennsylvania, Local Government Revenue Bonds,         
 5.75%, 7/01/32        1,500    1,678,380 

 
 
 
East Stroudsburg, Pennsylvania, Area School         
 District, GO, Series A, 7.75%, 9/01/27 (d)    2,000    2,378,480 

 
 
Erie County, Pennsylvania, Convention Center         
 Authority, Convention Center Hotel Revenue Bonds,         
 5%, 1/15/36 (d)        8,850    8,505,027 

 
 
 
Gettysburg, Pennsylvania, Municipal Authority, College         
 Revenue Refunding Bonds, 5%, 8/15/23 (b)    4,000    4,012,760 

 
 
Lehigh County, Pennsylvania, General Purpose         
 Authority, Hospital Revenue Bonds (Lehigh Valley         
 Health Network) (a):             
     Series A, 5%, 7/01/33        7,995    7,871,477 
     Series B, 5%, 7/01/35        2,500    2,467,125 

 
 
 
Monroe County, Pennsylvania, Hospital Authority         
 Revenue Refunding Bonds (Pocono Medical         
 Center), 5.125%, 1/01/37        1,265    1,105,534 

 
 
 
Montgomery County, Pennsylvania, IDA, Water         
 Facilities Revenue Bonds (Aqua Pennsylvania, Inc.         
 Project), Series A, 5.25%, 7/01/42        1,800    1,679,940 

 
 
 
North Allegheny, Pennsylvania, School District, GO,         
 Series C, 5.25%, 5/01/27 (a)        2,675    2,745,460 

 
 
 

    Par     
Municipal Bonds    (000)    Value 

 
 
 
     Pennsylvania (continued)         

 
 
 
Northampton Borough, Pennsylvania, Municipal         
 Authority, Water Revenue Bonds, 5%, 5/15/34 (b)    $ 935    $ 921,601 

 
 
Northeastern York School District, Pennsylvania, GO,         
 Series B, 5%, 4/01/32 (d)    1,585    1,542,015 

 
 
Northumberland County, Pennsylvania, IDA,         
 Water Facilities Revenue Refunding Bonds         
 (Aqua Pennsylvania Inc. Project), AMT,         
 5.05%, 10/01/39 (d)    6,000    5,318,940 

 
 
Pennsylvania Economic Development Financing         
 Authority, Solid Waste Disposal Revenue Bonds         
 (Waste Management Inc. Project), AMT, Series A,         
 5.10%, 10/01/27    1,200    961,080 

 
 
Pennsylvania HFA, Revenue Bonds, DRIVERS,         
 AMT, Series 1248Z, 7.327%, 10/01/09 (b)(f)    2,500    2,391,100 

 
 
Pennsylvania HFA, S/F Mortgage Revenue Refunding         
 Bonds, AMT, Series 96A, 4.70%, 10/01/37    3,000    2,386,770 

 
 
Pennsylvania State Higher Educational Facilities         
 Authority Revenue Bonds:         
     (Drexel University), Series A, 5%, 5/01/37 (b)    5,000    4,902,450 
     (UPMC Health System), Series A, 6%, 1/15/22    3,000    3,178,470 
     (York College of Pennsylvania Project),         
     Series EE1, 5%, 11/01/33 (g)    1,000    966,520 

 
 
Pennsylvania State Higher Educational Facilities         
 Authority, State System Revenue Bonds,         
 Series AE, 4.75%, 6/15/32 (b)    8,845    8,361,532 

 
 
Pennsylvania State, IDA, EDR, Refunding,         
 5.50%, 7/01/20 (e)    7,000    7,401,310 

 
 
Pennsylvania State Public School Building Authority,         
 School and Capital Appreciation Revenue Bonds         
 (Corry Area School District) (a)(h):         
     4.85%, 12/15/22    1,980    957,172 
     4.87%, 12/15/23    1,980    901,949 
     4.89%, 12/15/24    1,980    850,568 
     4.92%, 12/15/25    1,980    803,009 

 
 
Pennsylvania State Turnpike Commission, Oil         
 Franchise Tax Revenue Bonds, Series C,         
 5%, 12/01/32 (b)    13,600    13,523,296 

 
 
Pennsylvania State Turnpike Commission, Turnpike         
 Revenue Bonds, Series A, 5.50%, 12/01/31 (e)    7,800    8,055,918 

 
 
Philadelphia, Pennsylvania, Authority for Industrial         
 Development, Airport Revenue Refunding Bonds         
 (Philadelphia Airport System Project), AMT,         
 Series A (d):         
     5.50%, 7/01/17    4,000    3,992,840 
     5.50%, 7/01/18    3,655    3,623,165 

 
 
Philadelphia, Pennsylvania, Authority for Industrial         
 Development, Lease Revenue Bonds, Series B,         
 5.50%, 10/01/11 (a)(i)    7,680    8,359,526 

 
 

  See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2008

19


Schedule of Investments (continued) BlackRock MuniYield Pennsylvania Insured Fund

(Percentages shown are based on Net Assets)

    Par     
Municipal Bonds    (000)    Value 

 
 
 
Pennsylvania (concluded)         

 
 
 
Philadelphia, Pennsylvania, GO, Refunding, Series A,         
 5.25%, 12/15/32 (a)    $ 7,000    $ 7,005,110 

 
 
Philadelphia, Pennsylvania, Gas Works Revenue         
 Bonds, 1998 General Ordinance, 4th Series,         
 5%, 8/01/32 (a)    10,000    9,848,900 

 
 
Philadelphia, Pennsylvania, Hospitals and Higher         
 Education Facilities Authority, Hospital Revenue         
 Refunding Bonds (Presbyterian Medical Center),         
 6.65%, 12/01/19 (j)    3,000    3,563,610 

 
 
Philadelphia, Pennsylvania, Housing Authority         
 Revenue Bonds (Capital Fund Program), Series A,         
 5.50%, 12/01/18 (a)    3,000    3,197,820 

 
 
Philadelphia, Pennsylvania, Qualified Redevelopment         
 Authority Revenue Bonds, AMT, Series B,         
 5%, 4/15/27 (d)    4,645    4,288,589 

 
 
Philadelphia, Pennsylvania, Redevelopment Authority         
 Revenue Bonds (Neighborhood Transformation),         
 Series A, 5.50%, 4/15/22 (d)    1,750    1,765,575 

 
 
Philadelphia, Pennsylvania, School District, GO,         
 Series B, 5.625%, 8/01/12 (d)(i)    10,000    11,014,200 

 
 
Philadelphia, Pennsylvania, Water and Wastewater         
 Revenue Bonds, Series A, 5%, 7/01/27 (a)    3,000    3,040,140 

 
 
Reading, Pennsylvania, Area Water Authority, Water         
 Revenue Bonds, 5%, 12/01/27 (a)    2,680    2,702,673 

 
 
Reading, Pennsylvania, School District, GO,         
 5%, 1/15/29 (a)    6,000    6,059,340 

 
 
Sayre, Pennsylvania, Health Care Facilities Authority,         
 Revenue Refunding Bonds (Guthrie Healthcare         
 System), Series A, 5.875%, 12/01/31    590    596,000 

 
 
Shaler Area School District, Pennsylvania, Capital         
 Appreciation, GO, 4.765%, 9/01/30 (g)(h)    6,145    1,734,795 

 
 
Southcentral General Authority, Pennsylvania,         
 Revenue Bonds (York College of Pennsylvania         
 Project), 5%, 5/01/37 (g)    2,000    1,917,480 

 
 
York, Pennsylvania, City School District, GO, Series A,         
 5.25%, 6/01/22 (g)    1,040    1,058,282 
       
        201,320,742 

 
 
 
Guam — 1.4%         

 
 
 
A.B. Won Guam International Airport Authority,         
 General Revenue Refunding Bonds, AMT, Series C,         
 5%, 10/01/23 (b)    2,500    2,333,325 

 
 
Total Municipal Bonds — 124.1%        203,654,067 

 
 

Municipal Bonds Transferred to    Par     
Tender Option Bond Trusts (k)    (000)    Value 

 
 
 
Pennsylvania         

 
 
 
East Stroudsburg, Pennsylvania, Area School District,         
 GO, Refunding, 5%, 9/01/25 (a)    $ 7,000    $ 7,163,940 

 
 
Pennsylvania State Public School Building Authority,         
 Lease Revenue Refunding Bonds, Series 2888Z,         
 5%, 6/01/26 (a)(f)    19,025    19,387,421 

 
 
Pennsylvania State Public School Building Authority,         
 School Lease Revenue Bonds (The School District         
 of Philadelphia Project), 5.25%, 6/01/27 (a)(i)    15,000    16,371,150 

 
 
Philadelphia, Pennsylvania, Airport Revenue Bonds,         
 AMT, Series A, 5%, 6/15/37 (a)    7,500    6,869,025 

 
 
Scranton, Pennsylvania, School District, GO, Series A,         
 5%, 7/01/38 (a)    9,996    9,980,204 

 
 
Total Municipal Bonds Transferred to Tender Option         
Bond Trusts — 36.4%        59,771,740 

 
 
Total Long-Term Investments         
(Cost — $268,527,018) — 160.5%        263,425,807 

 
 
 
 
 
Short-Term Securities    Shares     

 
 
CMA Pennsylvania Municipal Money Fund,         
 1.68% (l)(m)    12,061,162    12,061,162 

 
 
Total Short-Term Securities         
(Cost — $12,061,162) — 7.4%        12,061,162 

 
 
Total Investments (Cost — $280,588,180*) — 167.9%    275,486,969 
Other Assets Less Liabilities — 1.2%        2,003,114 
Liability for Trust Certificates, Including Interest         
   Expense and Fees Payable — (21.9)%        (35,946,120) 
Preferred Shares, at Redemption Value — (47.2)%        (77,424,791) 
       
Net Assets Applicable to Common Shares — 100.0%        $164,119,172 
   
 

  * The cost and unrealized appreciation (depreciation) of investments as of July 31,
2008, as computed for federal income tax purposes, were as follows:

Aggregate cost    $245,196,407 
   
Gross unrealized appreciation    $ 4,336,850 
Gross unrealized depreciation    (9,887,194) 
   
Net unrealized depreciation    $ (5,550,344) 
   

(a) FSA Insured.
(b) MBIA Insured.
(c) FNMA/GNMA Collateralized.
(d) FGIC Insured.
(e) AMBAC Insured.
(f) Variable rate security. Rate shown is as of report date. Maturity shown is the final
maturity date.
(g) XL Capital Insured.
(h) Represents a zero-coupon bond. Rate shown is the effective yield at the time of
purchase.
(i) U.S. 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.

See Notes to Financial Statements.

20 ANNUAL REPORT

JULY 31, 2008


Schedule of Investments (concluded) BlackRock MuniYield Pennsylvania Insured Fund

  (j) Security is collateralized by municipal or U.S. Treasury Obligations.
(k) Securities represent bonds transferred to a tender option bond trust in
exchange for which the Fund acquired residual interest certificates. These securi-
ties serve as collateral in a financing transaction. See Note 1 of the Notes to
Financial Statements for details of municipal bonds transferred to tender option
bond trusts.
(l) 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     
Affiliate    Activity    Income 

 
 
 
CMA Pennsylvania Municipal Money Fund    11,974,900    $79,019 

 
 

(m) Represents the current yield as of report date.
Forward interest rate swaps outstanding as of July 31,2008 were as follows:

    Notional    Unrealized 
    Amount    Appreciation 
    (000)    (Depreciation) 

 
 
 
Pay a fixed rate of 3.389% and receive         
a floating rate based on 1-week         
SIFMA Municipal Swap Index rate         
Broker, JPMorgan Chase         
Expires August 2018    $14,250    $ 28,414 
Pay a fixed rate of 3.978% and receive         
a floating rate based on 1-week         
SIFMA Municipal Swap Index rate         
Broker, JPMorgan Chase         
Expires October 2028    $10,750    (255,452) 

 
 
Total        $(227,038) 
       

  See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2008

21


Statements of Assets and Liabilities                 
 
    BlackRock    BlackRock    BlackRock    BlackRock 
    MuniYield    MuniYield    MuniYield    MuniYield 
       Florida    Michigan    New Jersey    Pennsylvania 
July 31, 2008    Insured Fund    Insured Fund, Inc.    Insured Fund, Inc.    Insured Fund 

 
 
 
 
     Assets                 

 
 
 
 
Investments at value — unaffiliated1    $184,724,424    $440,575,183    $199,079,160    $263,425,807 
Investments at value — affiliated2    12,412,044    4,567,533    798,701    12,061,162 
Unrealized appreciation on forward interest rate swaps                28,414 
Cash    2,817    73,701    64,915    64,244 
Interest receivable    2,556,964    5,546,982    1,650,395    2,971,787 
Investments sold receivable    70,000             
Prepaid expenses    6,803    15,757    7,880    9,842 
   
 
 
 
Total assets    199,773,052    450,779,156    201,601,051    278,561,256 

 
 
 
 
 
     Accrued Liabilities                 

 
 
 
 
Unrealized depreciation on forward interest rate swaps                255,452 
Investments purchased payable    4,990,171    3,861,560         
Income dividends payable — Common Shares    452,172    983,140    475,313    608,470 
Investment advisory fees payable    80,127    188,143    85,433    114,770 
Interest expense and fees payable    111,578    167,047    33,347    105,214 
Other affiliates payable    1,762    4,037    1,774    2,753 
Officer’s and Directors’/Trustees’ fees payable    294    667    378    427 
Other accrued expenses payable    70,750    125,931    81,880    89,301 
   
 
 
 
Total accrued liabilities    5,706,854    5,330,525    678,125    1,176,387 

 
 
 
 
 
     Other Liabilities                 

 
 
 
 
Trust certificates3    18,350,484    42,955,691    9,957,080    35,840,906 
   
 
 
 
Total Liabilities    24,057,338    48,286,216    10,635,205    37,017,293 

 
 
 
 
 
     Preferred Shares at Redemption Value                 

 
 
 
 
Preferred Shares, at $25,000 per share liquidation preference4,5    62,266,457    144,686,735    65,732,699    77,424,791 

 
 
 
 
 
     Net Assets Applicable to Common Shares                 

 
 
 
 
Net Assets Applicable to Common Shares    $113,449,257    $257,806,205    $125,233,147    $164,119,172 

 
 
 
 
 
     Net Assets Applicable to Common Shareholders Consist of                 

 
 
 
 
Common Shares, par value $0.10 per share6    $ 845,181    $ 1,820,630    $ 880,210    $ 1,148,057 
Paid-in capital in excess of par    117,070,606    262,101,745    123,256,564    169,088,427 
Undistributed net investment income    373,391    825,729    1,253,004    559,654 
Accumulated net realized loss    (3,068,696)    (9,858,749)    (500,469)    (1,348,717) 
Net unrealized appreciation/depreciation    (1,771,225)    2,916,850    343,838    (5,328,249) 
   
 
 
 
Net Assets Applicable to Common Shareholders    $113,449,257    $257,806,205    $125,233,147    $164,119,172 
   
 
 
 
Net asset value per share of Common Shares    $ 13.42    $ 14.16    $ 14.23    $ 14.30 
   
 
 
 
     1 Investments at cost — unaffiliated    $186,495,649    $437,658,333    $198,735,322    $268,527,018 
   
 
 
 
     2 Investments at cost — affiliated    $ 12,412,044    $ 4,567,533    $ 798,701    $ 12,061,162 
   
 
 
 
     3 Represents short-term floating rate certificates issued by tender option bond trusts.                 
     4 Preferred Shares issued and outstanding:                 
             Series A, par value of $0.05 per share    2,075    1,753    2,002    1,214 
   
 
 
 
             Series B, par value of $0.05 per share    415    1,753        1,457 
   
 
 
 
             Series B, par value of $0.10 per share            626     
   
 
 
 
             Series C, par value of $0.05 per share        1,403        425 
   
 
 
 
             Series D, par value of $0.10 per share        877         
   
 
 
 
     5 Preferred Shares authorized    1,000,000    6,600    2,940    1,000,000 
   
 
 
 
     6 Common Shares issued and outstanding    8,451,814    18,206,301    8,802,099    11,480,567 
   
 
 
 
 
See Notes to Financial Statements.                 
   
 
 
 

22 ANNUAL REPORT

JULY 31, 2008


Statements of Operations                 
 
                   BlackRock MuniYield                 BlackRock MuniYield 
                   Florida Insured Fund    Michigan Insured Fund, Inc. 
   
 
    Period November 1,         Year Ended    Period November 1,    Year Ended 
    2007 to July 31,    October 31,    2007 to July 31,    October 31, 
               2008             2007               2008         2007 

 
 
 
 
     Investment Income                 

 
 
 
 
Interest    $ 7,225,699    $ 9,842,341    $ 15,442,040    $ 23,346,555 
Income from affiliates    90,469    95,766    170,765    137,587 
   
 
 
 
Total income    7,316,168    9,938,107    15,612,805    23,484,142 

 
 
 
 
 
     Expenses                 

 
 
 
 
Investment advisory    721,142    977,034    1,644,505    2,207,154 
Commission for Preferred Shares    134,732    182,703    309,916    420,888 
Professional    76,183    77,267    129,177    87,582 
Accounting services    61,320    88,703    106,061    151,893 
Transfer agent    14,536    45,819    24,772    76,347 
Printing    14,542    20,811    32,330    44,959 
Officer and Directors/Trustees    9,469    22,093    21,423    22,323 
Custodian    9,182    12,090    18,158    24,464 
Registration    8,811    9,436    8,811    9,436 
Miscellaneous    40,929    55,516    67,906    79,779 
   
 
 
 
Total expenses excluding interest expense and fees    1,090,846    1,491,472    2,363,059    3,124,825 
Interest expense and fees1    278,641    405,590    561,946    1,172,910 
   
 
 
 
Total expenses    1,369,487    1,897,062    2,925,005    4,297,735 
Less fees waived by advisor    (21,120)    (15,883)    (43,472)    (22,170) 
   
 
 
 
Total expenses after waiver    1,348,367    1,881,179    2,881,533    4,275,565 
   
 
 
 
Net investment income    5,967,801    8,056,928    12,731,272    19,208,577 

 
 
 
 
 
     Realized and Unrealized Gain (Loss)                 

 
 
 
 
Net realized gain (loss) from:                 
   Investments    (181,617)    286,303    (1,246,561)    1,663,620 
   Swaps    (191,322)    (109,389)        (93,463) 
   
 
 
 
    (372,939)    176,914    (1,246,561)    1,570,157 
   
 
 
 
Net change in unrealized appreciation/depreciation on:                 
   Investments    (7,823,283)    (4,471,390)    (13,574,409)    (9,861,159) 
   Swaps    66,960    122,801        139,794 
   
 
 
 
    (7,756,323)    (4,348,589)    (13,574,409)    (9,721,365) 
   
 
 
 
Total realized and unrealized loss    (8,129,262)    (4,171,675)    (14,820,970)    (8,151,208) 

 
 
 
 
 
     Dividends to Preferred Shareholders From                 

 
 
 
 
Net investment income    (1,872,136)    (2,631,621)    (4,212,108)    (5,850,606) 
   
 
 
 
Net Increase (Decrease) in Net Assets Applicable to Common Shareholders                 
Resulting from Operations    $ (4,033,597)    $ 1,253,632    $ (6,301,806)    $ 5,206,763 
   
 
 
 
   1 Related to tender option bond trusts.                 

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2008

23


Statements of Operations (concluded)                 
 
                   BlackRock MuniYield                 BlackRock MuniYield 
    New Jersey Insured Fund, Inc.             Pennsylvania Insured Fund 
   
 
    Period November 1,         Year Ended    Period November 1,    Year Ended 
    2007 to July 31,    October 31,    2007 to July 31,    October 31, 
               2008             2007               2008         2007 

 
 
 
 
 
     Investment Income                 

 
 
 
 
 
Interest    $ 7,262,083    $ 10,198,947    $ 10,099,053    $ 14,693,124 
Income from affiliates    9,451    29,087    79,019    20,208 
   
 
 
 
Total income    7,271,534    10,228,034    10,178,072    14,713,332 

 
 
 
 
 
     Expenses                 

 
 
 
 
 
Investment advisory    761,003    1,034,003    1,039,188    1,412,279 
Commission for Preferred Shares    137,589    186,372    187,062    261,134 
Professional    84,671    76,081    94,948    79,762 
Accounting services    62,912    91,671    63,830    95,961 
Transfer agent    15,427    47,721    21,448    56,203 
Printing    15,290    22,064    21,382    28,852 
Officer and Directors/Trustees    10,435    22,104    13,764    22,175 
Custodian    8,789    13,745    13,246    19,074 
Registration    8,811    9,435    8,811    9,436 
Miscellaneous    49,863    56,982    56,076    60,732 
   
 
 
 
Total expenses excluding interest expense and fees    1,154,790    1,560,178    1,519,755    2,045,608 
Interest expense and fees1    63,160    268,042    474,503    1,055,463 
   
 
 
 
Total expenses    1,217,950    1,828,220    1,994,258    3,101,071 
Less fees waived by advisor    (2,637)    (4,167)    (24,132)    (3,253) 
Less fees paid indirectly            (28)     
   
 
 
 
Total expenses after waiver and fees paid indirectly    1,215,313    1,824,053    1,970,098    3,097,818 
   
 
 
 
Net investment income    6,056,221    8,403,981    8,207,974    11,615,514 

 
 
 
 
 
     Realized and Unrealized Gain (Loss)                 

 
 
 
 
 
Net realized gain (loss) from:                 
   Investments    (7,701)    588,462    1,905,522    2,680,909 
   Futures and swaps    (10,031)        (2,217,824)    (343,664) 
   
 
 
 
    (17,732)    588,462    (312,302)    2,337,245 
   
 
 
 
Net change in unrealized appreciation/depreciation on:                 
   Investments    (6,708,329)    (4,321,927)    (13,613,414)    (7,389,915) 
   Swaps            306,825    390,911 
   
 
 
 
    (6,708,329)    (4,321,927)    (13,306,589)    (6,999,004) 
   
 
 
 
Total realized and unrealized loss    (6,726,061)    (3,733,465)    (13,618,891)    (4,661,759) 

 
 
 
 
 
     Dividends and Distributions to Preferred Shareholders From                 

 
 
 
 
 
Net investment income    (1,835,167)    (2,420,847)    (2,559,463)    (3,638,710) 
Net realized gain    (42,392)    (23,780)         
   
 
 
 
Total dividends and distributions to Preferred Shareholders    (1,877,559)    (2,444,627)    (2,559,463)    (3,638,710) 
   
 
 
 
Net Increase (Decrease) in Net Assets Applicable to Common Shareholders                 
Resulting from Operations    $ (2,547,399)    $ 2,225,889    $ (7,970,380)    $ 3,315,045 
   
 
 
 
 
   1 Related to tender option bond trusts.                 

See Notes to Financial Statements.

24 ANNUAL REPORT

JULY 31, 2008


Statements of Changes in Net Assets    BlackRock MuniYield Florida Insured Fund 
             Period         
    November 1, 2007    Year Ended October 31, 
Increase (Decrease) in Net Assets:    to July 31, 2008           2007           2006 

 
 
 
     Operations             

 
 
 
Net investment income    $ 5,967,801    $ 8,056,928    $ 8,162,555 
Net realized gain (loss)    (372,939)    176,914    48,897 
Net change in unrealized appreciation/depreciation    (7,756,323)    (4,348,589)    2,043,553 
Dividends to Preferred Shareholders from net investment income    (1,872,136)    (2,631,621)    (2,323,697) 
   
 
 
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations    (4,033,597)    1,253,632    7,931,308 

 
 
 
 
     Dividends to Common Shareholders From             

 
 
 
Net investment income    (4,090,678)    (5,721,878)    (6,338,731) 

 
 
 
 
     Capital Share Transactions             

 
 
 
Reinvestment of common dividends            27,237 

 
 
 
 
     Net Assets Applicable to Common Shareholders             

 
 
 
Total increase (decrease) in net assets applicable to Common Shares    (8,124,275)    (4,468,246)    1,619,814 
Beginning of period    121,573,532    126,041,778    124,421,964 
   
 
 
End of period    $ 113,449,257    $ 121,573,532    $ 126,041,778 
   
 
 
End of period undistributed net investment income    $ 373,391    $ 339,357    $ 635,928 
   
 
 
 
 
    BlackRock MuniYield Michigan Insured Fund, Inc. 
             Period         
    November 1, 2007    Year Ended October 31, 
Increase (Decrease) in Net Assets:    to July 31, 2008           2007           2006 

 
 
 
     Operations             

 
 
 
Net investment income    $ 12,731,272    $ 19,208,577    $ 18,947,795 
Net realized gain (loss)    (1,246,561)    1,570,157    766,219 
Net change in unrealized appreciation/depreciation    (13,574,409)    (9,721,365)    3,191,112 
Dividends to Preferred Shareholders from net investment income    (4,212,108)    (5,850,606)    (5,190,018) 
   
 
 
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations    (6,301,806)    5,206,763    17,715,108 

 
 
 
 
     Dividends to Common Shareholders From             

 
 
 
Net investment income    (9,485,483)    (12,962,886)    (15,230,229) 

 
 
 
 
     Capital Share Transactions             

 
 
 
Reinvestment of common dividends            614,402 

 
 
 
 
     Net Assets Applicable to Common Shareholders             

 
 
 
Total increase (decrease) in net assets applicable to Common Shares    (15,787,289)    (7,756,123)    3,099,281 
Beginning of period    273,593,494    281,349,617    278,250,336 
   
 
 
End of period    $ 257,806,205    $ 273,593,494    $ 281,349,617 
   
 
 
End of period undistributed net investment income    $ 825,729    $ 1,796,256    $ 1,401,171 
   
 
 
 
 
See Notes to Financial Statements.             
   
 
 

ANNUAL REPORT

JULY 31, 2008

25


Statements of Changes in Net Assets    BlackRock MuniYield New Jersey Insured Fund, Inc. 
 
                 Period         
    November 1, 2007    Year Ended October 31, 
Increase (Decrease) in Net Assets:    to July 31, 2008           2007           2006 

 
 
 
     Operations             

 
 
 
Net investment income    $ 6,056,221    $ 8,403,981    $ 8,577,480 
Net realized gain (loss)    (17,732)    588,462    982,663 
Net change in unrealized appreciation/depreciation    (6,708,329)    (4,321,927)    2,138,341 
Dividends to Preferred Shareholders from:             
     Net investment income    (1,835,167)    (2,420,847)    (2,163,956) 
     Net realized gain    (42,392)    (23,780)     
   
 
 
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations    (2,547,399)    2,225,889    9,534,528 

 
 
 
 
     Dividends and Distributions to Common Shareholders From             

 
 
 
Net investment income    (4,289,500)    (5,747,771)    (6,390,415) 
Net realized gain    (103,918)    (70,742)     
   
 
 
Decrease in net assets resulting from dividends and distributions to Common Shareholders    (4,393,418)    (5,818,513)    (6,390,415) 

 
 
 
 
     Net Assets Applicable to Common Shareholders             

 
 
 
Total increase (decrease) in net assets applicable to Common Shares    (6,940,817)    (3,592,624)    3,144,113 
Beginning of period    132,173,964    135,766,588    132,622,475 
   
 
 
End of period    $ 125,233,147    $ 132,173,964    $ 135,766,588 
   
 
 
End of period undistributed net investment income    $ 1,253,004    $ 1,307,514    $ 1,086,101 
   
 
 
 
 
 
    BlackRock MuniYield Pennsylvania Insured Fund 
 
                 Period         
    November 1, 2007    Year Ended October 31, 
Increase (Decrease) in Net Assets:    to July 31, 2008           2007           2006 

 
 
 
     Operations             

 
 
 
Net investment income    $ 8,207,974    $ 11,615,514    $ 11,618,794 
Net realized gain (loss)    (312,302)    2,337,245    34,726 
Net change in unrealized appreciation/depreciation    (13,306,589)    (6,999,004)    4,128,137 
Dividends to Preferred Shareholders from net investment income    (2,559,463)    (3,638,710)    (3,155,383) 
   
 
 
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations    (7,970,380)    3,315,045    12,626,274 

 
 
 
 
     Dividends to Common Shareholders From             

 
 
 
Net investment income    (5,717,322)    (7,910,111)    (8,977,803) 

 
 
 
 
     Capital Share Transactions             

 
 
 
Underwriting discounts and offering costs relating to the issuance of Preferred Shares            (17,729) 

 
 
 
 
     Net Assets Applicable to Common Shareholders             

 
 
 
Total increase (decrease) in net assets applicable to Common Shares    (13,687,702)    (4,595,066)    3,630,742 
Beginning of period    177,806,874    182,401,940    178,771,198 
   
 
 
End of period    $ 164,119,172    $ 177,806,874    $ 182,401,940 
   
 
 
End of period undistributed net investment income    $ 559,654    $ 677,381    $ 650,149 
   
 
 

See Notes to Financial Statements.

26 ANNUAL REPORT

JULY 31, 2008


Financial Highlights                    BlackRock MuniYield Florida Insured Fund 
 
    Period                             
    November 1, 2007        Year Ended October 31,         
    to July 31, 2008        2007    2006             2005         2004    2003 

 
 
 
 
 
 
 
 
     Per Share Operating Performance                                 

 
 
 
 
 
 
 
 
Net asset value, beginning of period    $ 14.38    $ 14.91    $ 14.72    $ 15.22    $ 15.04    $ 15.04 
   
 
 
 
 
 
Net investment income1    0.71        0.95    0.97    0.98        0.98    1.05 
Net realized and unrealized gain (loss)    (0.97)        (0.49)    0.24    (0.38)        0.20    (0.06) 
Dividends to Preferred Shareholders from net investment income    (0.22)        (0.31)    (0.27)    (0.17)        (0.07)    (0.07) 
   
 
 
 
 
 
 
 
Net increase (decrease) from investment operations    (0.48)        0.15    0.94    0.43        1.11    0.92 
   
 
 
 
 
 
 
 
Dividends to Common Shareholders from net investment income    (0.48)        (0.68)    (0.75)    (0.90)        (0.93)    (0.92) 
   
 
 
 
 
 
 
 
Capital charges with respect to the issuance of Preferred Shares                    (0.03)             
   
 
 
 
 
 
 
 
Net asset value, end of period    $ 13.42    $ 14.38    $ 14.91    $ 14.72    $ 15.22    $ 15.04 
   
 
 
 
 
 
Market price, end of period    $ 11.75    $ 12.74    $ 14.21    $ 14.18    $ 14.98    $ 14.18 

 
 
 
 
 
 
 
     Total Investment Return2                                 

 
 
 
 
 
 
 
 
Based on net asset value    (2.97)%3        1.39%    6.87%    2.72%        7.98%    6.45% 
   
 
 
 
 
 
 
 
Based on market price    (4.11)%3        (5.75)%    5.73%    0.54%        12.73%    5.56% 

 
 
 
 
 
 
 
 
 
     Ratios to Average Net Assets Applicable to Common Shares                                 

 
 
 
 
 
 
 
 
Total expenses after waiver and excluding interest expense and fees4,5    1.18%6        1.20%    1.17%    1.20%        1.09%    1.08% 
   
 
 
 
 
 
 
 
Total expenses after waiver5    1.49%6        1.52%    1.45%    1.38%        1.27%    1.25% 
   
 
 
 
 
 
 
 
Total expenses5    1.51%6        1.54%    1.46%    1.38%        1.28%    1.25% 
   
 
 
 
 
 
 
 
Net investment income5    6.60%6        6.53%    6.58%    6.50%        6.54%    6.86% 
   
 
 
 
 
 
 
 
Dividends to Preferred Shareholders    2.07%6        2.13%    1.87%    1.13%        0.48%    0.47% 
   
 
 
 
 
 
 
 
Net investment income to Common Shareholders    4.53%6        4.40%    4.71%    5.37%        6.06%    6.39% 

 
 
 
 
 
 
 
 
 
     Supplemental Data                                 

 
 
 
 
 
 
 
 
Net assets applicable to Common Shares,                                 
end of period (000)    $ 113,449    $ 121,574    $ 126,042    $ 124,422    $ 128,455    $ 126,915 
   
 
 
 
 
 
Preferred Shares outstanding at liquidation preference,                                 
end of period (000)    $ 62,250    $ 72,000    $ 72,000    $ 72,000    $ 60,000    $ 60,000 
   
 
 
 
 
 
Portfolio turnover    21%        26%    34%    52%        28%    40% 
   
 
 
 
 
 
 
 
Asset coverage end of period per $1,000    $ 2,822    $ 2,689    $ 2,751    $ 2,728    $ 3,141    $ 3,115 
   
 
 
 
 
 

1      Based on average shares outstanding.
 
2      Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.
 
3      Aggregate total investment return.
 
4      Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.
 
5      Do not reflect the effect of dividends to Preferred Shareholders.
 
6      Annualized.
 

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2008

27


Financial Highlights                BlackRock MuniYield Michigan Insured Fund, Inc. 
 
    Period                             
    November 1, 2007        Year Ended October 31,         
    to July 31, 2008        2007    2006           2005        2004    2003 
     Per Share Operating Performance                                 

 
 
 
 
 
 
 
 
Net asset value, beginning of period    $ 15.03    $ 15.45    $ 15.32    $ 15.96    $ 15.94    $ 15.74 
   
 
 
 
 
 
Net investment income1    0.70        1.06    1.04    1.08        1.06    1.10 
Net realized and unrealized gain (loss)    (0.82)        (0.45)    0.22    (0.54)        0.03    0.15 
Dividends to Preferred Shareholders from net investment income    (0.23)        (0.32)    (0.29)    (0.18)        (0.07)    (0.07) 
   
 
 
 
 
 
 
 
Net increase (decrease) from investment operations    (0.35)        (0.29)    0.97    0.36        1.02    1.18 
   
 
 
 
 
 
 
 
Dividends to Common Shareholders from net investment income    (0.52)        (0.71)    (0.84)    (0.98)        (1.00)    (0.98) 
   
 
 
 
 
 
 
 
Capital charges with respect to the issuance of Preferred Shares                    (0.02)             
   
 
 
 
 
 
 
 
Net asset value, end of period    $ 14.16    $ 15.03    $ 15.45    $ 15.32    $ 15.96    $ 15.94 
   
 
 
 
 
 
Market price, end of period    $ 12.30    $ 13.40    $ 14.67    $ 15.31    $ 15.37    $ 14.69 

 
 
 
 
 
 
 
     Total Investment Return2                                 

 
 
 
 
 
 
 
 
Based on net asset value    (2.02)%3        2.30%    6.64%    2.24%        7.04%    8.26% 
   
 
 
 
 
 
 
 
Based on market price    (4.54)%3        (3.95)%    1.32%    6.10%        11.85%    12.57% 

 
 
 
 
 
 
 
 
 
     Ratios to Average Net Assets Applicable to Common Shares                                 

 
 
 
 
 
 
 
 
Total expenses after waiver and excluding interest expense and fees4,5    1.13%6        1.12%    1.11%    1.10%        1.00%    1.01% 
   
 
 
 
 
 
 
 
Total expenses after waiver5    1.40%6        1.55%    1.61%    1.42%        1.19%    1.20% 
   
 
 
 
 
 
 
 
Total expenses5    1.42%6        1.55%    1.62%    1.42%        1.22%    1.21% 
   
 
 
 
 
 
 
 
Net investment income5    6.19%6        6.95%    6.84%    6.84%        6.69%    6.83% 
   
 
 
 
 
 
 
 
Dividends to Preferred Shareholders    2.05%6        2.12%    1.87%    1.13%        0.46%    0.45% 
   
 
 
 
 
 
 
 
Net investment income to Common Shareholders    4.14%6        4.83%    4.97%    5.71%        6.23%    6.38% 

 
 
 
 
 
 
 
 
 
     Supplemental Data                                 

 
 
 
 
 
 
 
 
Net assets applicable to Common Shares, end of period (000)    $ 257,806    $ 273,593    $ 281,350    $ 278,250    $ 289,695    $ 289,364 
   
 
 
 
 
 
Preferred Shares outstanding at liquidation preference, end of                                 
period (000)    $ 144,650    $ 165,000    $ 165,000    $ 165,000    $ 140,000    $ 140,000 
   
 
 
 
 
 
Portfolio turnover    21%        10%    15%    25%        32%    29% 
   
 
 
 
 
 
 
 
Asset coverage end of period per $1,000    $ 2,782    $ 2,658    $ 2,705    $ 2,686    $ 3,069    $ 3,067 
   
 
 
 
 
 

1      Based on average shares outstanding.
 
2      Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.
 
3      Aggregate total investment return.
 
4      Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.
 
5      Do not reflect the effect of dividends to Preferred Shareholders.
 
6      Annualized.
 

See Notes to Financial Statements.

28 ANNUAL REPORT

JULY 31, 2008


Financial Highlights                BlackRock MuniYield New Jersey Insured Fund, Inc. 
 
    Period                             
    November 1, 2007                           Year Ended October 31,         
    to July 31, 2008        2007    2006           2005        2004    2003 
     Per Share Operating Performance                                 

 
 
 
 
 
 
 
 
Net asset value, beginning of period    $ 15.02    $ 15.42    $ 15.07    $ 15.46    $ 15.25    $ 15.14 
   
 
 
 
 
 
Net investment income1    0.69        0.96    0.97    0.96        1.03    1.06 
Net realized and unrealized gain (loss)    (0.76)        (0.42)    0.36    (0.27)        0.21    0.06 
Dividends and distributions to Preferred Shareholders from:                                 
   Net investment income    (0.21)        (0.28)    (0.25)    (0.16)        (0.06)    (0.06) 
   Net realized gain    (0.01)        2                    2 
   
 
 
 
 
 
 
 
Net increase (decrease) from investment operations    (0.29)        0.26    1.08    0.53        1.18    1.06 
   
 
 
 
 
 
 
 
Dividends and distributions to Common Shareholders from:                                 
   Net investment income    (0.49)        (0.65)    (0.73)    (0.92)        (0.94)    (0.94) 
   Net realized gain    (0.01)        (0.01)                    (0.01) 
   
 
 
 
 
 
 
 
Total dividends and distributions to Common Shareholders    (0.50)        (0.66)    (0.73)    (0.92)        (0.94)    (0.95) 
   
 
 
 
 
 
 
 
Capital charges with respect to the issuance of Preferred Shares                    3        (0.03)     
   
 
 
 
 
 
 
 
Net asset value, end of period    $ 14.23    $ 15.02    $ 15.42    $ 15.07    $ 15.46    $ 15.25 
   
 
 
 
 
 
Market price, end of period    $ 12.81    $ 13.70    $ 14.96    $ 14.65    $ 15.16    $ 14.39 

 
 
 
 
 
 
 
     Total Investment Return4                                 

 
 
 
 
 
 
 
 
Based on net asset value    (1.67)%5        2.00%    7.50%    3.49%        7.99%    7.24% 
   
 
 
 
 
 
 
 
Based on market price    (2.95)%5        (4.10)%    7.28%    2.60%        12.23%    6.02% 

 
 
 
 
 
 
 
 
 
     Ratios to Average Net Assets Applicable to Common Shares                                 

 
 
 
 
 
 
 
 
Total expenses after waiver and excluding interest expense and fees6,7    1.18%8        1.17%    1.15%    1.16%        1.06%    1.03% 
   
 
 
 
 
 
 
 
Total expenses after waiver7    1.24%8        1.37%    1.59%    1.52%        1.33%    1.29% 
   
 
 
 
 
 
 
 
Total expenses7    1.24%8        1.37%    1.59%    1.52%        1.35%    1.30% 
   
 
 
 
 
 
 
 
Net investment income7    6.18%8        6.30%    6.46%    6.21%        6.79%    6.89% 
   
 
 
 
 
 
 
 
Dividends to Preferred Shareholders    1.87%8        1.81%    1.63%    1.03%        0.42%    0.38% 
   
 
 
 
 
 
 
 
Net investment income to Common Shareholders    4.31%8        4.49%    4.83%    5.18%        6.37%    6.51% 

 
 
 
 
 
 
 
 
 
     Supplemental Data                                 

 
 
 
 
 
 
 
 
Net assets applicable to Common Shares, end of period (000)    $ 125,233    $ 132,174    $ 135,767    $ 132,622    $ 135,370    $ 133,240 
   
 
 
 
 
 
Preferred Shares outstanding at liquidation preference, end of                                 
   period (000)    $ 65,700    $ 73,500    $ 73,500    $ 73,500    $ 73,500    $ 56,000 
   
 
 
 
 
 
Portfolio turnover    13%        23%    11%    29%        16%    21% 
   
 
 
 
 
 
 
 
Asset coverage end of period per $1,000    $ 2,906    $ 2,798    $ 2,847    $ 2,804    $ 2,842    $ 3,379 
   
 
 
 
 
 

1      Based on average shares outstanding.
 
2      Amount is less than ($0.01) per share.
 
3      Amount is less than $0.01 per share.
 
4      Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.
 
5      Aggregate total investment return.
 
6      Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.
 
7      Do not reflect the effect of dividends to Preferred Shareholders.
 
8      Annualized.
 

See Notes to Financial Statements.

ANNUAL REPORT

JULY 31, 2008

29


Financial Highlights                BlackRock MuniYield Pennsylvania Insured Fund 
 
    Period                             
    November 1, 2007        Year Ended October 31,         
    to July 31, 2008        2007    2006           2005        2004    2003 
     Per Share Operating Performance                                 

 
 
 
 
 
 
 
 
Net asset value, beginning of period    $ 15.49    $ 15.89    $ 15.57    $ 16.04    $ 15.56    $ 15.34 
   
 
 
 
 
 
Net investment income1    0.71        1.01    1.01    1.05        1.08    1.11 
Net realized and unrealized gain (loss)    (1.18)        (0.40)    0.36    (0.35)        0.48    0.16 
Dividends to Preferred Shareholders from net investment income    (0.22)        (0.32)    (0.27)    (0.19)        (0.08)    (0.07) 
   
 
 
 
 
 
 
 
Net increase (decrease) from investment operations    (0.69)        0.29    1.10    0.51        1.48    1.20 
   
 
 
 
 
 
 
 
Dividends to Common Shareholders from net investment income    (0.50)        (0.69)    (0.78)    (0.96)        (1.00)    (0.98) 
   
 
 
 
 
 
 
 
Capital charges with respect to the issuance of Preferred Shares                2    (0.02)             
   
 
 
 
 
 
 
 
Net asset value, end of period    $ 14.30    $ 15.49    $ 15.89    $ 15.57    $ 16.04    $ 15.56 
   
 
 
 
 
 
Market price, end of period    $ 12.43    $ 13.67    $ 14.60    $ 14.91    $ 15.61    $ 14.81 

 
 
 
 
 
 
 
     Total Investment Return3                                 

 
 
 
 
 
 
 
 
Based on net asset value    (4.18)%4        2.19%    7.52%    3.16%        10.15%    8.33% 
   
 
 
 
 
 
 
 
Based on market price    (5.62)%4        (1.85)%    3.16%    1.51%        12.63%    10.07% 

 
 
 
 
 
 
 
 
 
     Ratios to Average Net Assets Applicable to Common Shares                                 

 
 
 
 
 
 
 
 
Total expenses after waiver and fees paid indirectly and excluding                                 
interest expense and fees5,6    1.13%7        1.13%    1.13%    1.13%        1.05%    1.07% 
   
 
 
 
 
 
 
 
Total expenses after waiver and fees paid indirectly6    1.48%7        1.72%    1.69%    1.69%        1.32%    1.29% 
   
 
 
 
 
 
 
 
Total expenses after waiver and before fees paid indirectly6    1.48%7        1.72%    1.69%    1.69%        1.32%    1.29% 
   
 
 
 
 
 
 
 
Total expenses6    1.50%7        1.72%    1.70%    1.70%        1.33%    1.30% 
   
 
 
 
 
 
 
 
Net investment income6    6.18%7        6.44%    6.49%    6.56%        6.89%    7.08% 
   
 
 
 
 
 
 
 
Dividends to Preferred Shareholders    1.93%7        2.02%    1.76%    1.17%        0.51%    0.47% 
   
 
 
 
 
 
 
 
Net investment income to Common Shareholders    4.25%7        4.42%    4.73%    5.39%        6.38%    6.61% 

 
 
 
 
 
 
 
 
 
     Supplemental Data                                 

 
 
 
 
 
 
 
 
Net assets applicable to Common Shares, end of period (000)    $ 164,119    $ 177,807    $ 182,402    $ 178,771    $ 183,877    $ 178,337 
   
 
 
 
 
 
Preferred Shares outstanding at liquidation preference, end of                                 
   period (000)    $ 77,400    $ 102,000    $ 102,000    $ 102,000    $ 88,000    $ 88,000 
   
 
 
 
 
 
Portfolio turnover    24%        35%    25%    42%        41%    41% 
   
 
 
 
 
 
 
 
Asset coverage end of period per $1,000    $ 3,120    $ 2,743    $ 2,788    $ 2,753    $ 3,090    $ 3,027 
   
 
 
 
 
 

1      Based on average shares outstanding.
 
2      Amount is less than ($0.01) per share.
 
3      Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.
 
4      Aggregate total investment return.
 
5      Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.
 
6      Do not reflect the effect of dividends to Preferred Shareholders.
 
7      Annualized.
 

See Notes to Financial Statements.

30 ANNUAL REPORT

JULY 31, 2008


Notes to Financial Statements

1. Significant Accounting Policies:

BlackRock MuniYield Florida Insured Fund, BlackRock MuniYield
Michigan Insured Fund, Inc., BlackRock MuniYield New Jersey Insured
Fund, Inc. and BlackRock MuniYield Pennsylvania Insured Fund
(the “Funds” or individually, as the “Fund”) are registered under the
Investment Company Act of 1940, as amended (the “1940 Act”), as
non-diversified, closed-end management investment companies. The
Funds’ financial statements are prepared in conformity with accounting
principles generally accepted in the United States of America, which
may require the use of management accruals and estimates. Actual
results may differ from these estimates. The Funds recently changed
their fiscal year end to July 31. The Funds determine and make avail-
able for publication the net asset value of their Common Shares on a
daily basis.

The following is a summary of significant accounting policies followed
by the Funds:

Valuation of Investments: Municipal investments (including commitments
to purchase such investments on a “when-issued” basis) are valued
on the basis of prices provided by dealers or pricing services selected
under the supervision of each Fund’s Board of Trustees or Directors (the
“Board”). In determining the value of a particular investment, pricing
services may use certain information with respect to transactions in such
investments, quotations from dealers, pricing matrixes, market trans-
actions in comparable investments and various relationships between
investments. Financial futures contracts traded on exchanges are valued
at their last sale price. Swaps are valued by quoted fair values received
daily by the funds pricing service or through brokers. Short-term securi-
ties are valued at amortized cost. Investments in open-end investment
companies are valued at net asset value each business day.

In the event that application of these methods of valuation results in
a price for an investment which is deemed not to be representative of
the market value of such investment, the investment will be valued by
a method approved by the Board as reflecting fair value (“Fair Value
Assets”). When determining the price for Fair Value Assets, the invest-
ment advisor and/or sub-advisor seeks to determine the price that the
Fund might reasonably expect to receive from the current sale of that
asset in an arm’s-length transaction. Fair value determinations shall be
based upon all available factors that the investment advisor and/or sub-
advisor deems relevant. The pricing of all Fair Value Assets is subse-
quently reported to the Board or a committee thereof.

Derivative Financial Instruments: The Funds may engage in various
portfolio investment strategies both to increase the return of the Funds
and to hedge, or protect, their exposure to interest rate movements and
movements in the securities markets. Losses may arise if the value of
the contract decreases due to an unfavorable change in the price of
the underlying security or if the counterparty does not perform under
the contract.

Financial futures contracts — Each Fund may purchase or sell finan-
cial futures contracts and options on such futures contracts. Futures
contracts are contracts for delayed delivery of securities at a specific
future date and at a specific price or yield. Upon entering into a
contract, the Fund deposits, and maintains as collateral such initial
margin as required by the exchange on which the transaction is
effected. Pursuant to the contract, the Fund agrees to receive from,
or pay to, the broker an amount of cash equal to the daily fluctuation
in value of the contract. Such receipts or payments are known as
margin variation and are recognized by the Fund as unrealized gains
or losses. When the contract is closed, the Fund records a realized
gain or loss equal to the difference between the value of the contract
at the time it was opened and the value at the time it was closed.

Forward interest rate swaps — Each Fund may enter into forward
interest rate swaps. In a forward interest rate swap, the Fund and
the counterparty agree to make periodic net payments on a specified
notional contract amount, commencing on a specified future effective
date, unless terminated earlier. Changes in the value of the forward
interest rate swap are recognized as unrealized gains and losses.
When the agreement is closed, the Fund records a realized gain or
loss in an amount equal to the value of the agreement. The Fund
generally intends to close each forward interest rate swap before the
effective date specified in the agreement and therefore avoid entering
into the interest rate swap underlying each forward interest rate swap.

Municipal Bonds Transferred to Tender Option Bond Trusts: The Funds
leverage their assets through the use of tender option bond trusts
(“TOBs”). A TOB is established by a third party sponsor forming a special
purpose entity, into which one or more funds, or an agent on behalf of
the funds, transfers municipal securities. Other funds managed by the
investment advisor may also contribute municipal securities to a TOB
into which each Fund has contributed securities. A TOB typically issues
two classes of beneficial interests: short-term floating rate certificates,
which are sold to third party investors, and residual certificates (“TOB
Residuals”), which are generally issued to the participating fund that
made the transfer. The TOB Residuals held by a Fund include the right of
the Fund (1) to cause the holders of a proportional share of the floating
rate certificates to tender their certificates at par, and (2) to transfer,
within seven days, a corresponding share of the municipal securities
from the TOB to the Fund. The cash received by the TOB from the sale of
the short-term floating rate certificates, less transaction expenses, is
paid to the Fund, which typically invests the cash in additional municipal
securities. Each Fund’s transfer of the municipal securities to a TOB is
accounted for as a secured borrowing, therefore the municipal securities
deposited into a TOB are presented in the Funds’ Schedules of
Investments and the proceeds from the transaction are reported as a lia-
bility of the Funds.

ANNUAL REPORT

JULY 31, 2008

31


Notes to Financial Statements (continued)

Interest income from the underlying security is recorded by the Funds on
an accrual basis. Interest expense incurred on the secured borrowing
and other expenses related to remarketing, administration and trustee
services to a TOB are reported as expenses of the Funds. The floating
rate certificates have interest rates that generally reset weekly and their
holders have the option to tender certificates to the TOB for redemption
at par at each reset date. At July 31, 2008, the aggregate value of the
underlying municipal securities transferred to TOBs, the related liability
for trust certificates and the range of interest rates on the liability for the
trust certificates were as follows:

    Underlying         
    Municipal         
    Securities    Liability for    Range of 
    Transferred    Trust    Interest 
    to TOBs    Certificates    Rates 

 
 
 
BlackRock MuniYield             
   Florida Insured            1.761% – 
   Fund    $31,674,526    $18,350,484    2.545% 
Blackrock MuniYield             
   Michigan Insured            1.735% – 
   Fund, Inc    $77,426,605    $42,955,691    2.524% 
BlackRock MuniYield             
   New Jersey Insured            1.739% – 
   Fund, Inc    $15,994,268    $ 9,957,080    2.084% 
BlackRock MuniYield             
   Pennsylvania            1.719% – 
   Insured Fund    $59,771,740    $35,840,906    2.610% 

 
 
 

Financial transactions executed through TOBs generally will underperform
the market for fixed rate municipal bonds in a rising interest rate envi-
ronment, but tend to outperform the market for fixed rate bonds when
interest rates decline or remain relatively stable. Should short-term
interest rates rise, the Funds’ investments in TOBs likely will adversely
affect each Fund’s investment income and dividends to Common
Shareholders. Fluctuations in the market value of municipal securities
deposited into the TOB may adversely affect each Fund’s net asset value
per share.

Zero-Coupon Bonds: The Funds may invest in zero-coupon bonds, which
are normally issued at a significant discount from face value and do not
provide periodic interest payments. Zero-coupon bonds may experience
greater volatility in market value than similar maturity debt obligations
which provide regular interest payments.

Segregation: In cases in which the 1940 Act and the interpretive posi-
tions of the Securities and Exchange Commission (“SEC”) require that
the Funds segregate assets in connection with certain investments
(e.g., futures and swaps) or certain borrowings, each Fund will, consis-
tent with certain interpretive letters issued by the SEC, designate on its
books and records cash or other liquid debt securities having a market
value at least equal to the amount that would otherwise be required to
be physically segregated.

Investment Transactions and Investment Income: Investment trans-
actions are recorded on the dates the transactions are entered into
(the trade dates). Realized gains and losses on security transactions are
determined on the identified cost basis. Dividend income is recorded
on the ex-dividend dates. Interest income is recognized on the
accrual method. The Funds amortize all premiums and discounts on
debt securities.

Dividends and Distributions: Dividends from net investment income
are declared and paid monthly. Distributions of capital gains are record-
ed on the ex-dividend dates. Dividends and distributions to holders of
Preferred Shares are accrued and determined as described in Note 4.

Income Taxes: It is each Fund’s policy to comply with the requirements
of the Internal Revenue Code applicable to regulated investment compa-
nies and to distribute substantially all of its taxable income to its share-
holders. Therefore, no federal income tax provision is required.

Effective April 30, 2008, the Funds implemented Financial Accounting
Standards Board (“FASB”) Interpretation No. 48, “Accounting for
Uncertainty in Income Taxes — an interpretation of FASB Statement No.
109” (“FIN 48”). FIN 48 prescribes the minimum recognition threshold a
tax position must meet in connection with accounting for uncertainties
in income tax positions taken or expected to be taken by an entity,
including investment companies, before being measured and recognized
in the financial statements. The investment advisor has evaluated the
application of FIN 48 to each Fund, and has determined that the adop-
tion of FIN 48 does not have a material impact on each Fund’s financial
statements. The Funds file U.S. federal and various state and local tax
returns. No income tax returns are currently under examination. The
statute of limitations on each Fund’s U.S. federal tax returns remains
open for the years ended October 31, 2005 through October 31, 2007.
The statutes of limitations on each Fund’s state and local tax returns
may remain open for an additional year depending upon the jurisdiction.

Recent Accounting Pronouncements: In September 2006, Statement of
Financial Accounting Standards No. 157, “Fair Value Measurements”
(“FAS 157”), was issued and is effective for fiscal years beginning after
November 15, 2007. FAS 157 defines fair value, establishes a frame-
work for measuring fair value and expands disclosures about fair value
measurements. The impact on each Fund’s financial statement disclo-
sures, if any, is currently being assessed.

In addition, in February 2007, Statement of Financial Accounting
Standards No. 159, “The Fair Value Option for Financial Assets and
Financial Liabilities” (“FAS 159”), was issued and is effective for fiscal
years beginning after November 15, 2007. FAS 159 permits entities to
choose to measure many financial instruments and certain other items
at fair value that are not currently required to be measured at fair value.
FAS 159 also establishes presentation and disclosure requirements

32 ANNUAL REPORT

JULY 31, 2008


Notes to Financial Statements (continued)

designed to facilitate comparisons between entities that choose different
measurement attributes for similar types of assets and liabilities. The
impact on each Fund’s financial statement disclosures, if any, is currently
being assessed.

In March 2008, Statement of Financial Accounting Standards No. 161,
“Disclosures about Derivative Instruments and Hedging Activities — an
amendment of FASB Statement No. 133” (FAS 161) was issued and is
effective for fiscal years beginning after November 15, 2008. FAS 161
is intended to improve financial reporting for derivative instruments by
requiring enhanced disclosure that enables investors to understand how
and why an entity uses derivatives, how derivatives are accounted for,
and how derivative instruments affect an entity’s results of operations
and financial position. The impact on each Fund’s financial statement
disclosures, if any, is currently being assessed.

Deferred Compensation and BlackRock Closed-End Share Equivalent
Investment Plan: Under the deferred compensation plan approved by
each Fund’s Board, non-interested Trustees or Directors (“Independent
Trustees or Directors”) may defer a portion of their annual complex-wide
compensation. Deferred amounts earn an approximate return as though
equivalent dollar amounts had been invested in common shares of
other certain BlackRock Closed-End Funds selected by the Independent
Trustees or Directors. This has approximately the same economic effect
for the Independent Trustees or Directors as if the Independent Trustees
or Directors had invested the deferred amounts directly in other certain
BlackRock Closed-End Funds.

The deferred compensation plan is not funded and obligations there-
under represent general unsecured claims against the general assets
of each Fund. Each Fund may, however, elect to invest in common shares
of other certain BlackRock Closed-End Funds selected by the Independent
Trustees or Directors in order to match their deferred compensation
obligations.

Other: Expenses directly related to each Fund are charged to that
Fund. Other operating expenses shared by several funds are pro-rated
among those funds on the basis of relative net assets or other appro-
priate methods.

2. Investment Advisory Agreement and Other Transactions
with Affiliates:

Each Fund entered into an Investment Advisory Agreement with
BlackRock Advisors, LLC (the “Advisor”), an indirect, wholly owned
subsidiary of BlackRock, Inc., to provide investment advisory and admin-
istration services. Merrill Lynch & Co., Inc. (“Merrill Lynch”) and The PNC
Financial Services Group, Inc. are principal owners of BlackRock, Inc.

The Advisor is responsible for the management of each Fund’s portfolio
and provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Funds. For such ser-

vices, each Fund pays the Advisor a monthly fee at an annual rate of
0.50% of each Fund’s average daily net assets. Average daily net assets
is the average daily value of each Fund’s total assets minus the sum of
its accrued liabilities.

The Advisor has agreed to waive its advisory fees by the amount of
investment advisory fees each Fund pays to the Advisor indirectly
through its investment in affiliated money market funds. These amounts
are included in fees waived by advisor on the Statements of Operations.

The Advisor has entered into a separate sub-advisory agreement with
BlackRock Investment Management, LLC (“BIM”), an affiliate of the
Advisor, under which the Advisor pays BIM for services it provides, a
monthly fee that is a percentage of the investment advisory fee paid by
the Funds to the Advisor.

For the period November 1, 2007 to July 31, 2008 and the year ended
October 31, 2007, each Fund reimbursed the Advisor for certain
accounting services, which are included in accounting services on the
Statements of Operations. The reimbursements were as follows:

    Period Ended    Year Ended 
    7/31/2008    10/31/2007 

 
 
BlackRock MuniYield Florida         
   Insured Fund    $2,367    $3,646 
BlackRock MuniYield Michigan         
   Insured Fund, Inc    $5,419    $8,234 
BlackRock MuniYield New Jersey         
   Insured Fund, Inc    $2,423    $3,862 
BlackRock MuniYield Pennsylvania         
   Insured Fund    $3,626    $5,279 

 
 

Pursuant to the terms of the custody agreement, fees may be reduced
by amounts calculated on uninvested cash balances (“custody credits”),
which are on the Statements of Operations as fees paid indirectly.

Certain officers and/or trustees or directors of each Fund are officers
and/or directors of BlackRock, Inc. or its affiliates. The Funds reimburse
the Advisor for compensation paid to the Funds’ Chief Compliance Officer.

3. Investments:

Purchases and sales of investments, excluding short-term securities, for
the period November 1, 2007 to July 31, 2008, were as follows:

    Total    Total 
    Purchases    Sales 

 
 
BlackRock MuniYield Florida         
   Insured Fund    $40,475,733    $ 50,304,812 
BlackRock MuniYield Michigan         
   Insured Fund, Inc    $94,172,608    $ 96,137,352 
BlackRock MuniYield New Jersey         
   Insured Fund, Inc    $32,866,271    $ 25,247,204 
BlackRock MuniYield Pennsylvania         
   Insured Fund    $67,162,308    $103,529,778 

 
 

ANNUAL REPORT

JULY 31, 2008

33


Notes to Financial Statements (continued)

4. Capital Share Transactions:

BlackRock MuniYield Florida Insured Fund and BlackRock MuniYield
Pennsylvania Insured Fund are authorized to issue an unlimited number
of Common Shares of beneficial interest, par value $0.10 per share
together with 1,000,000 Preferred Shares of beneficial interest, par
value of $0.05 per share. The Funds’ Board is authorized, however,
to classify and reclassify any unissued shares of capital shares without
approval of the holders of Common Shares.

BlackRock MuniYield Michigan Insured Fund, Inc. and BlackRock
MuniYield New Jersey Insured Fund, Inc. are authorized to issue
200,000,000 shares, including Preferred Shares, par value $0.10
per share or $0.05 per share, all of which were initially classified as
Common Shares. The Funds’ Board is authorized, however, to classify
any reclassify any unissued shares of capital shares without approval of
holders of Common Shares.

Common Shares

BlackRock MuniYield Florida Insured Fund

Shares issued and outstanding during the period November 1, 2007
to July 31, 2008 and the year ended October 31, 2007 remained con-
stant. Shares issued and outstanding during the year ended October 31,
2006 increased by 1,851 as a result of dividend reinvestment.

BlackRock MuniYield Michigan Insured Fund, Inc.

Shares issued and outstanding during the period November 1, 2007
to July 31, 2008 and the year ended October 31, 2007 remained con-
stant. Shares issued and outstanding during the year ended October 31,
2006 increased by 40,195 as a result of dividend reinvestment.

BlackRock MuniYield New Jersey Insured Fund, Inc.

Shares issued and outstanding during the period November 1, 2007
to July 31, 2008 and the years ended October 31, 2007 and October
31, 2006 remained constant.

BlackRock MuniYield Pennsylvania Insured Fund

Shares issued and outstanding during the period November 1, 2007
to July 31, 2008 and the years ended October 31, 2007 and October
31, 2006 remained constant.

Preferred Shares

Preferred Shares of the Funds have a liquidation preference of $25,000
per share, plus accrued and unpaid dividends that entitles their holders
to receive cash dividends at an annual rate that may vary for the suc-
cessive dividend periods.

BlackRock MuniYield Florida Insured Fund and BlackRock MuniYield
Pennsylvania Insured Fund have a par value of $0.05 per share.
BlackRock MuniYield Michigan Insured Fund, Inc. has a par value of
$0.05 per share on Series A Shares, Series B Shares and Series C

Shares, and $0.10 per share on Series D Shares. BlackRock MuniYield
New Jersey Insured Fund, Inc. has a par value of $0.05 per share for
Series A Shares and $0.10 per share for Series B Shares. The yields in
effect at July 31, 2008 were as follows:

        BlackRock 
    BlackRock    MuniYield 
    MuniYield Florida    Michigan Insured 
    Insured Fund    Fund, Inc. 

 
 
Series A    3.579%1    3.503%1 
Series B    4.215%2    3.579%1 
Series C        3.427%1 
Series D        4.354%2 

 
 
 
 
    BlackRock    BlackRock 
    MuniYield    MuniYield 
    New Jersey Insured    Pennsylvania 
    Fund, Inc.    Insured Fund 

 
 
Series A    3.579%1    3.579%1 
Series B    4.132%2    3.503%1 
Series C        4.132%2 

 
 

1 The maximum applicable rate on this series of Preferred Shares is the higher of
110% of the AA commercial paper rate or 110% of 90% of the Kenny S&P
30-day High Grade Index rate divided by 1.00 minus the marginal tax rate.
2 The maximum applicable rate on this series of Preferred Shares is the higher of
110% plus or times (i) the Telerate/BBA LIBOR or (ii) 90% of the Kenny S&P
30-day High Grade Index rate divided by 1.00 minus the marginal tax rate.

Each Fund pays commissions to certain broker-dealers at the end of
each auction at an annual rate of 0.25%, calculated on the aggregate
principal amount. For the period November 1, 2007 to July 31, 2008
and the year ended October 31, 2007, Merrill Lynch, Pierce, Fenner &
Smith Incorporated, a wholly owned subsidiary of Merrill Lynch, earned
commissions as follows:

    Period Ended    Year Ended 
    7/31/2008    10/31/2007 

 
 
BlackRock MuniYield Florida         
 Insured Fund    $ 86,890    $115,812 
BlackRock MuniYield Michigan         
 Insured Fund, Inc    $150,895    $186,966 
BlackRock MuniYield New Jersey         
 Insured Fund, Inc    $ 81,336    $105,471 
BlackRock MuniYield Pennsylvania         
 Insured Fund    $112,489    $147,665 

 
 

On June 2, 2008, the Funds announced the following redemptions of
Preferred Shares at a price of $25,000 per share plus any accrued and
unpaid dividends through the redemption date:

BlackRock MuniYield    Redemption    Shares    Aggregate 
Florida Insured Fund    Date    Redeemed    Principal 

 
 
 
Series A    6/24/2008    325    $ 8,125,000 
Series B    6/26/2008    65    $ 1,625,000 

 
 
 

34 ANNUAL REPORT

JULY 31, 2008


Notes to Financial Statements (continued)

BlackRock MuniYield    Redemption    Shares    Aggregate 
Michigan Insured Fund, Inc.    Date    Redeemed    Principal 

 
 
 
Series A    6/25/2008    247    $ 6,175,000 
Series B    6/23/2008    247    $ 6,175,000 
Series C    6/26/2008    197    $ 4,925,000 
Series D    6/24/2008    123    $ 3,075,000 

 
 
 
 
 
BlackRock MuniYield    Redemption    Shares    Aggregate 
New Jersey Insured Fund, Inc.    Date    Redeemed    Principal 

 
 
 
Series A    6/23/2008    238    $ 5,950,000 
Series B    6/27/2008    74    $ 1,850,000 

 
 
 
 
 
BlackRock MuniYield    Redemption    Shares    Aggregate 
Pennsylvania Insured Fund    Date    Redeemed    Principal 

 
 
 
Series A    6/24/2008    386    $ 9,650,000 
Series B    6/25/2008    463    $11,575,000 
Series C    6/27/2008    135    $ 3,375,000 

 
 
 

The Funds financed the Preferred Shares redemptions with cash received
from TOB transactions.

Shares issued and outstanding during the years ended October 31,
2007 and October 31, 2006 remained constant.

Dividends on seven-day Preferred Shares are cumulative at a rate which
is reset every seven days based on the results of an auction. If the
Preferred Shares fail to clear the auction on an auction date, each
Fund is required to pay the maximum applicable rate on the Preferred
Shares to holders of such shares for successive dividend periods until
such time as the stock is successfully auctioned. The maximum applica-
ble rate on Preferred Shares is as footnoted on the above chart. During
the period November 1, 2007 to July 31, 2008, the Preferred Shares
of each Fund were successfully auctioned at each auction date until
February 13, 2008. The low, high and average dividend rates on the
Preferred Shares for each Fund for the period November 1, 2007 to
July 31, 2008 were as follows:

BlackRock MuniYield Florida Insured Fund         

 
 
    Low    High    Average 

 
 
 
Series A    2.483%    4.750%    3.433% 
Series B    3.200%    5.060%    3.926% 

 
 
 
 
BlackRock MuniYield Michigan Insured Fund, Inc.         

 
 
    Low    High    Average 

 
 
 
Series A    2.535%    4.600%    3.399% 
Series B    2.483%    4.508%    3.348% 
Series C    2.480%    4.500%    3.369% 
Series D    2.575%    5.198%    3.886% 

 
 
 

BlackRock MuniYield New Jersey Insured Fund, Inc.         

 
 
    Low    High    Average 

 
 
 
Series A    2.483%    4,508%    3.294% 
Series B    2.699%    5.198%    3.799% 

 
 
 
 
BlackRock MuniYield Pennsylvania Insured Fund         

 
 
    Low    High    Average 

 
 
 
Series A    2.483%    4,508%    3.347% 
Series B    2.535%    4.356%    3.380% 
Series C    2.900%    5.198%    3.881% 

 
 
 

Since February 13, 2008, the Preferred Shares of each Fund failed to
clear any of their auctions. As a result, the Preferred Shares dividend
rates were reset to the maximum applicable rate, which ranged from
2.483% to 5.198% . A failed auction is not an event of default for the
Funds but it has a negative impact on the liquidity of the Preferred
Shares. A failed auction occurs when there are more sellers of a fund’s
auction rate Preferred Shares than buyers. It is impossible to predict
how long this imbalance will last. A successful auction for each Fund’s
Preferred Shares may not occur for some time, if ever, and even if liquidity
does resume, holders of Preferred Shares may not have the ability to sell
the Preferred Shares at its liquidation preference.

The Funds may not declare dividends or make other distributions on
Common Shares or purchase any such shares if, at the time of the
declaration, distribution or purchase, asset coverage with respect to the
outstanding Preferred Shares is less than 200%.

The Preferred Shares are redeemable at the option of each Fund, in
whole or in part, on any dividend payment date at $25,000 per share
plus any accumulated unpaid dividends whether or not declared. The
Preferred Shares are also subject to mandatory redemption at $25,000
per share plus any accumulated or unpaid dividends, whether or not
declared, if certain requirements relating to the composition of the
assets and liabilities of the Fund, as set forth in each Fund’s Articles
Supplementary/ Certificate of Designation, are not satisfied.

The holders of Preferred Shares have voting rights equal to the holders
of Common Shares (one vote per share) and will vote together with
holders of Common Shares (one vote per share) as a single class.
However, holders of Preferred Shares, voting as a separate class, are
also entitled to elect two Trustees or Directors for each Fund. In addition,
the 1940 Act requires that along with approval by shareholders that
might otherwise be required, the approval of the holders of a majority
of any outstanding Preferred Shares, voting separately as a class would
be required to (a) adopt any plan of reorganization that would adversely
affect the Preferred Shares, (b) change each Fund’s subclassification
as a closed-end investment company or change its fundamental invest-
ment restrictions or (c) change its business so as to cease to be an
investment company.

ANNUAL REPORT

JULY 31, 2008

35


Notes to Financial Statements (continued)

5. Income Tax Information:

Reclassifications: Accounting principles generally accepted in the United
States of America require that certain components of net assets be adjust-
ed to reflect permanent differences between financial and tax reporting.
These reclassifications have no effect on net assets or net asset values per
share.

During the current period, $505,802 has been reclassified in BlackRock
MuniYield Florida Insured Fund between paid-in capital in excess of
par and accumulated net realized loss, and $29,047 has been reclassi-
fied between accumulated net realized loss and undistributed net
investment income as a result of permanent differences attributable to
expiration of capital loss carryforwards and amortization methods on fixed
income securities.

During the current period, $6,685,590 has been reclassified in BlackRock
MuniYield Michigan Insured Fund, Inc. between paid-in capital in excess
of par and accumulated net realized losses, and $4,208 has been reclas-
sified between undistributed net investment income and accumulated
net realized losses as a result of permanent differences attributable to
expiration of capital loss carryforwards and amortization methods on fixed
income securities.

During the current period, $13,936 has been reclassified in BlackRock
MuniYield New Jersey Insured Fund, Inc. between undistributed net invest-
ment income and accumulated net realized loss as a result of permanent
differences attributable to the reclassification of distributions.

During the current period, $845,375 has been reclassified in BlackRock
MuniYield Pennsylvania Insured Fund between paid-in capital in excess
of par and accumulated net realized loss and $48,916 has been reclassi-
fied between undistributed net investment income and accumulated
net realized loss as a result of permanent differences attributable to
expiration of capital loss carryforwards and amortization methods on
fixed income securities.

BlackRock MuniYield Florida Insured Fund

The tax character of distributions paid during the period November 1,
2007 to July 31, 2008 and the years ended October 31, 2007 and
October 31, 2006 was as following:

    11/01/07–         
    7/31/2008    10/31/2007    10/31/2006 
   
 
 
Distributions paid from:             
Tax-exempt income    $5,962,814    $8,353,499    $8,662,428 
   
 
 
Total distributions    $5,962,814    $8,353,499    $8,662,428 
   
 
 

As of July 31, 2008, the components of accumulated losses on a tax basis
were as follows:

Undistributed tax-exempt net income    $ 321,473 
Undistrubuted ordinary net income    108,983 
   
Total undistributed net earnings    430,456 
Capital loss carryforward    (2,851,819)* 
Net unrealized losses    (2,045,167)** 
   
Total accumulated net losses    $ (4,466,530) 
   

* On July 31, 2008, the Fund had a capital loss carryforward of $2,851,819, of
which $2,081,725 expires in 2012 and $770,094 expires in 2016. This amount
will be available to offset future realized capital gains.
** The difference between book-basis and tax-basis net unrealized losses is attribut-
able primarily to the tax deferral of losses on wash sales, the tax deferral of losses
on straddles and the difference between book and tax treatment of residual inter-
ests in tender option bond trusts.

BlackRock MuniYield Michigan Insured Fund, Inc.

The tax character of distributions paid during the period November 1,
2007 to July 31, 2008 and the years ended October 31, 2007 and
October 31, 2006 was as follows:

    11/01/07–         
    7/31/2008    10/31/2007    10/31/2006 
   
 
 
Distributions paid from:             
Tax-exempt income    $13,697,591    $18,813,492    $20,420,247 
   
 
 
Total distributions    $13,697,591    $18,813,492    $20,420,247 
   
 
 

As of July 31, 2008, the components of accumulated losses on a tax
basis were as follows:

Undistributed tax-exempt net income    $ 719,029 
Capital loss carryforward           (6,838,200)* 
Net unrealized gains                     3,001** 
   
Total accumulated net losses    $ (6,116,170) 
   

* On July 31, 2008, the Fund had a capital loss carryforward of $6,838,200,
of which $1,124,652 expires in 2010, $3,953,220 expires in 2012 and
$1,760,328 expires in 2016. This amount will be available to offset future
realized capital gains.
** The difference between book-basis and tax-basis net unrealized gains is
attributable primarily to the tax deferral of losses on wash sales, the tax deferral
of losses on straddles, the difference between book and tax amortization methods
for premiums and discounts on fixed income securities and the difference between
book and tax treatment of residual interests in tender option bond trusts.

BlackRock MuniYield New Jersey Insured Fund, Inc.

The tax character of distributions paid during the period November 1,
2007 to July 31, 2008 and the years ended October 31, 2007 and
October 31, 2006 was as follows:

36 ANNUAL REPORT

JULY 31, 2008


Notes to Financial Statements (continued)

    11/01/07–         
    7/31/2008    10/31/2007    10/31/2006 
   
 
 
Distributions paid from:             
   Tax-exempt income    $6,108,209    $8,168,618    $8,554,371 
   Ordinary income    16,458    53,500     
   Long-term capital gain    146,310    41,022     
   
 
 
Total distributions    $6,270,977    $8,263,140    $8,554,371 
   
 
 

As of July 31, 2008, the components of accumulated earnings on a tax
basis were as follows:

Undistributed tax-exempt net income    $ 987,246 
Undistributed long-term net capital gains    331,517 
   
Total undistributed net earnings    1,318,763 
Net unrealized losses               (222,390)* 
   
Total accumulated net earnings    $ 1,096,373 
   

  * The difference between book-basis and tax-basis net unrealized losses is attribut-
able primarily to the tax deferral of losses on straddles, the difference between
book and tax amortization methods for premiums and discounts on fixed income
securities and the difference between book and tax treatment of residual interests
in tender option bond trusts.

BlackRock MuniYield Pennsylvania Insured Fund

The tax character of distributions paid during the period November 1,
2007 to July 31, 2008 and the years ended October 31, 2007 and
October 31, 2006 was as follows:

    11/01/07–         
    7/31/2008    10/31/2007    10/31/2006 
   
 
 
Distributions paid from:             
Tax-exempt income    $8,276,785    $11,548,821    $12,133,186 
   
 
 
Total distributions    $8,276,785    $11,548,821    $12,133,186 
   
 
 

As of July 31, 2008, the components of accumulated losses on a tax
basis were as follows:

Undistributed tax-exempt net income    $ 311,679 
Net unrealized losses           (6,428,991)* 
   
Total accumulated net losses    $ (6,117,312) 
   

  * The difference between book-basis and tax-basis net unrealized losses is attribut-
able primarily to the tax deferral of losses on straddles, the difference between
book and tax amortization methods for premiums and discounts on fixed income
securities and the difference between book and tax treatment of residual interests
in tender option bond trusts.

6. Concentration Risk:

Each Fund’s investments are concentrated in certain states, which may be
affected by adverse financial, social, environmental, economic, regulatory
and political factors.

Many municipalities insure repayment of their bonds, which reduces the
risk of loss due to issuer default. The market value of these bonds may
fluctuate for other reasons, including market perception of the value of
such insurance, and there is no guarantee that the insurer will meet
its obligation.

7. Restatement Information (For BlackRock MuniYield
Michigan Insured Fund, Inc.):

Subsequent to the initial issuance of BlackRock MuniYield Michigan
Insured Fund, Inc. October 31, 2006 financial statements, the Fund
determined that the criteria for sale accounting in FAS 140 had not been
met for certain transfers of municipal bonds and that these transfers
should have been accounted for as secured borrowings rather than as
sales. As a result, certain financial highlights for each of the three years
in the period ended October 31, 2005 have been restated to give effect
to recording the transfers of the municipal bonds as secured borrowings,
including recording interest on the bonds as interest income and interest
on the secured borrowings as interest expense.

Financial Highlights for BlackRock MuniYield Michigan Insured Fund, Inc.
Years Ended October 31, 2005, 2004 and 2003

    2005        2004        2003 
   
 
 
 
 
    Previously            Previously            Previously     
    Reported    Restated Reported    Restated Reported    Restated 

 
 
 
 
Total expenses,                                 
after waiver5    1.10%        1.42%    1.00%        1.19%    1.01%    1.20% 
Total expenses5    1.10%        1.42%    1.02%        1.22%    1.03%    1.21% 
Portfolio turnover    30.16%        25%    36.63%        32%    33.39%    29% 

 
 
 
 
 
 
 
 
5 Do not reflect the effect of dividends to Preferred Shareholders.     

8. Subsequent Events:

BlackRock MuniYield Florida Insured Fund

The Fund paid a net investment income dividend to holders of Common
Shares in the amount of $0.0535 per share on September 2, 2008 to
shareholders of record on August 15, 2008.

The dividends declared on Preferred Shares for the period August 1,
2008 to August 31, 2008 were as follows:

Series A    $133,006 
Series B    $ 33,537 

 

BlackRock MuniYield Michigan Insured Fund, Inc.

The Fund paid a net investment income dividend to holders of Common
Shares in the amount of $0.054 per share on September 2, 2008 to
shareholders of record on August 15, 2008.

ANNUAL REPORT

JULY 31, 2008

37


Notes to Financial Statements (concluded)

The dividends declared on Preferred Shares for the period August 1, 2008
to August 31, 2008 were as follows:

Series A    $109,965 
Series B    $111,347 
Series C    $ 87,266 
Series D    $ 72,143 

 

BlackRock MuniYield New Jersey Insured Fund, Inc.

The Fund paid a net investment income dividend to holders of Common
Shares in the amount of $0.054 per share on September 2, 2008 to
shareholders of record on August 15, 2008.

The dividends declared on Preferred Shares for the period August 1, 2008
to August 31, 2008 were as follows:

Series A    $127,163 
Series B    $ 50,285 

 

BlackRock MuniYield Pennsylvania Insured Fund

The Fund paid a net investment income dividend to holders of Common
Shares in the amount of $0.053 per share on September 2, 2008 to
shareholders of record on August 15, 2008.

The dividends declared on Preferred Shares for the period August 1, 2008
to August 31, 2008 were as follows:

Series A    $82,212 
Series B    $76,653 
Series C    $28,904 

 

On September 12, 2008, the Board of Directors of BlackRock MuniYield
Florida Insured Fund, BlackRock MuniYield Michigan Insured Fund,
Inc., BlackRock MuniYield New Jersey Insured Fund, Inc. and BlackRock
MuniYield Pennsylvania Insured Fund voted unanimously to change
certain investment guidelines of the Funds. Under normal market
conditions, the Funds are required to invest at least 80% of their
total assets in municipal bonds either (i) insured under an insurance
policy purchased by the Funds or (ii) insured under an insurance
policy obtained by the issuer of the municipal bond or any other party.
Historically, the Funds have had an additional non-fundamental invest-
ment policy limiting its purchase of insured municipal bonds to those
bonds insured by insurance providers with claims-paying abilities rated
AAA or Aaa at the time of investment.

Following the onset of the credit and liquidity crises currently troubling
the financial markets, the applicable rating agencies lowered the claims-
paying ability rating of most of the municipal bond insurance providers
below the highest rating category. As a result, the Advisor recommended,
and the Board approved, an amended policy with respect to the pur-
chase of insured municipal bonds that such bonds must be insured by

insurance providers or other entities with claims-paying abilities rated
at least investment grade. This investment grade restriction is measured
at the time of investment, and the Funds will not be required to dispose
of municipal bonds they hold in the event of subsequent downgrades.
The approved changes do not alter the Funds’ investment objectives.

In addition, on September 12, 2008, the Board of Directors of
BlackRock MuniYield Florida Insured Fund voted unanimously to change
a non-fundamental investment policy of the Fund, and to rename the
Fund “BlackRock MuniYield Insured Investment Fund.” The Fund’s previ-
ous non-fundamental investment policy required the Fund, under normal
market conditions, to invest at least 80% of its assets in Florida municipal
bonds insured by insurers with claims-paying abilities rated AAA at time
of investment. Due to the repeal of the Florida Intangible Personal Property
Tax as of January 2007, the Board has approved an amended policy
allowing the Fund flexibility to invest in municipal obligations regardless
of geographic location, as well as revising the policy with respect to
the claims-paying ability rating adopted by the Fund. The Fund's new
investment policy is, under normal market conditions, to invest at least
80% of its assets in municipal bonds insured by insurers or other
entities with claims-paying abilities rated at least investment grade
at time of investment. The approved changes will not alter the Fund’s
investment objective.

Under current market conditions, the Advisor anticipates that it will
gradually reposition the BlackRock MuniYield Insured Investment Fund's
portfolio over time and that during such period, the Fund may continue to
hold a substantial portion of its assets in Florida municipal bonds. At
this time, it is uncertain how long the repositioning may take, and the
Fund will continue to be subject to risks associated with investing a
significant portion of its assets in Florida municipal bonds until the
repositioning is complete.

The Advisor and the Board believe the amended policies will allow the
Advisor to better manage the Funds’ portfolios in the best interests of the
Funds’ shareholders and to better meet the Funds' investment objectives.

On September 15, 2008, Bank of America Corporation announced that
it has agreed to acquire Merrill Lynch, one of the principal owners of
BlackRock, Inc. The purchase has been approved by the directors of
both companies. Subject to shareholder and regulatory approvals, the
transaction is expected to close in the first quarter of 2009.

38 ANNUAL REPORT

JULY 31, 2008


Report of Independent Registered Public Accounting Firm

To the Shareholders and Boards of Directors or Trustees
of BlackRock MuniYield Florida Insured Fund, BlackRock
MuniYield Michigan Insured Fund, Inc., BlackRock
MuniYield New Jersey Insured Fund, Inc. and BlackRock
MuniYield Pennsylvania Insured Fund:

We have audited the accompanying statements of assets and liabilities,
including the schedules of investments, of BlackRock MuniYield Florida
Insured Fund, Blackrock MuniYield New Jersey Insured Fund, Inc. and
BlackRock MuniYield Pennsylvania Insured Fund, as of July 31, 2008, and
the related statements of operations for the period November 1, 2007 to
July 31, 2008 and the year ended October 31, 2007, the statements of
changes in net assets for the period November 1, 2007 to July 31, 2008
and for each of the two years in the period ended October 31, 2007, and
the financial highlights for the period November 1, 2007 to July 31, 2008
and for each of the five years in the period ended October 31, 2007. We
have also audited the accompanying statement of assets and liabilities,
including the schedule of investments, of BlackRock MuniYield Michigan
Insured Fund, Inc. as of July 31, 2008, and the related statements of
operations for the period November 1, 2007 to July 31, 2008 and the
year ended October 31, 2007, and the statements of changes in net
assets and financial highlights for the period November 1, 2007 to July
31, 2008 and for each of the two years in the period ended October 31,
2007. BlackRock MuniYield Florida Insured Fund, Blackrock MuniYield
New Jersey Insured Fund, Inc., BlackRock MuniYield Pennsylvania Insured
Fund and BlackRock MuniYield Michigan Insured Fund, Inc. are collective-
ly referred to as the “Funds.” These financial statements and financial
highlights are the responsibility of the Funds’ management. Our responsi-
bility is to express an opinion on these financial statements and financial
highlights based on our audits. The financial highlights of BlackRock
MuniYield Michigan Insured Fund, Inc. for each of the three years in the
period ended October 31, 2005 (before the restatement described in
Note 7) were audited by other auditors whose report, dated December 9,
2005, expressed a qualified opinion on those financial highlights
because of the errors described in Note 7.

We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assur-
ance about whether the financial statements and financial highlights are
free of material misstatement. The Funds are not required to have, nor
were we engaged to perform, audits of their internal control over financial
reporting. Our audits included consideration of internal control over finan-
cial reporting as a basis for designing audit procedures that are appro-
priate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Funds’ internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclo-
sures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluat-
ing the overall financial statement presentation. Our procedures included
confirmation of securities owned as of July 31, 2008 by correspondence
with the custodian and brokers; where replies were not received from bro-
kers, we performed other auditing procedures. We believe that our audits
provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights of
BlackRock MuniYield Florida Insured Fund, Blackrock MuniYield New
Jersey Insured Fund, Inc. and BlackRock MuniYield Pennsylvania Insured
Fund, referred to above present fairly, in all material respects, the respec-
tive financial positions of each of those funds as of July 31, 2008, the
results of their operations for the period November 1, 2007 to July 31,
2008 and for the year ended October 31, 2007, the changes in their
net assets for the period November 1, 2007 to July 31, 2008 and for
each of the two years in the period ended October 31, 2007, and the
financial highlights for the period November 1, 2007 to July 31, 2008
and for each of the five years in the period ended October 31, 2007, in
conformity with accounting principles generally accepted in the United
States of America. Additionally, in our opinion, the financial statements
and financial highlights of BlackRock MuniYield Michigan Insured Fund,
Inc. as of July 31, 2008, the results of its operations for the period
November 1, 2007 to July 31, 2008 and for the year ended October 31,
2007, and the changes in its net assets and financial highlights for the
period November 1, 2007 to July 31, 2008 and for each of the two years
in the period ended October 31, 2007, in conformity with accounting
principles generally accepted in the United States of America.

We also have audited the adjustments, applied by management, to
restate certain financial highlights of BlackRock MuniYield Michigan
Insured Fund, Inc. (the “Michigan Insured Fund”) for each of the three
years in the period ended October 31, 2005, to correct the errors
described in Note 7. These adjustments are the responsibility of the
Michigan Insured Fund’s management. The audit procedures that we per-
formed with respect to the adjustments included such tests as we consid-
ered necessary in the circumstances and were designed to obtain rea-
sonable assurance about whether the adjustments are appropriate and
have been properly applied, in all material respects, to the restated infor-
mation in Michigan Insured Fund’s financial highlights for each of the
three years in the period ended October 31, 2005. We did not perform
any audit procedures designed to assess whether any additional adjust-
ments or disclosures to Michigan Insured Fund’s financial highlights for
each of the three years in the period ended October 31, 2005 might be
necessary in order for such financial highlights to be presented in con-
formity with accounting principles generally accepted in the United States
of America. In our opinion, the adjustments to the financial highlights of
Michigan Insured Fund for each of the three years in the period ended
October 31, 2005, for the restatement described in Note 7 are appropri-
ate and have been properly applied, in all material respects. However, we
were not engaged to audit, review, or apply any procedures to Michigan
Insured Fund’s financial highlights other than with respect to the adjust-
ments described in Note 7 and, accordingly, we do not express an
opinion or any other form of assurance on the Michigan Insured Fund’s
financial highlights for each of the three years in the period ended
October 31, 2005.

Deloitte & Touche LLP
Princeton, New Jersey
September 25, 2008

ANNUAL REPORT

JULY 31, 2008

39


Important Tax Information

All of the net investment income distributions paid by BlackRock MuniYield Florida Insured Fund, BlackRock MuniYield Michigan Insured Fund, Inc.,
and BlackRock MuniYield Pennsylvania Insured Fund during the period ended July 31, 2008 qualify as tax-exempt interest dividends for federal
income tax purposes.

The following table summarizes the taxable per share distributions paid by BlackRock MuniYield New Jersey Insured Fund, Inc. during
the taxable period ended July 31, 2008:

    Payable    Ordinary    Long-Term 
    Date    Income    Capital Gains 

 
 
 
Common Shareholders    12/31/2007    $0.001126    $0.011311 

 
 
 
Preferred Shareholders:             
     Series A    11/26/2007    $1.37    $13.98 
     Series B    11/30/2007    $1.36    $13.67 

 
 
 

All other net investment income distributions paid by BlackRock MuniYield New Jersey Insured Fund during the taxable period ended July 31, 2008
qualify as tax-exempt interest dividends for federal income tax purposes.

40 ANNUAL REPORT

JULY 31, 2008


Disclosure of Investment Advisory Agreement and Subadvisory Agreement

The Board of Directors (collectively, the “Board,” the members of
which are referred to as “Directors”) of the BlackRock MuniYield Florida
Insured Fund (“MFT”), BlackRock MuniYield Michigan Insured Fund, Inc.
(“MIY”), BlackRock MuniYield New Jersey Insured Fund, Inc. (“MJI”) and
BlackRock MuniYield Pennsylvania Insured Fund (“MPA,” and together
with MFT, MIY and MJI, the “Funds”) met in April and May 2008 to con-
sider approving the continuation of each Fund’s investment advisory
agreement (each, an “Advisory Agreement”) with BlackRock Advisors, LLC
(the “Advisor”), each Fund’s investment adviser. The Board also consid-
ered the approval of each Fund’s subadvisory agreement (each, a
“Subadvisory Agreement” and, together with the “Advisory Agreement,”
the “Agreements”) between the Advisor and BlackRock Investment
Management, LLC (the “Subadvisor”). The Advisor and the Subadvisor
are collectively referred to herein as the “Advisors” and, together with
BlackRock, Inc., “BlackRock.”

Activities and Composition of the Board

The Board of each Fund consists of thirteen individuals, eleven of whom
are not “interested persons” of the Funds as defined in the Investment
Company Act of 1940 (the “1940 Act”) (the “Independent Directors”).
The Directors are responsible for the oversight of the operations of the
Funds and perform the various duties imposed on the directors of invest-
ment companies by the 1940 Act. The Independent Directors have
retained independent legal counsel to assist them in connection with
their duties. The Chairman of the Board is an Independent Director. The
Board has established four standing committees: an Audit Committee, a
Governance and Nominating Committee, a Compliance Committee and
a Performance Oversight Committee.

Advisory Agreement and Subadvisory Agreement

Upon the consummation of the combination of BlackRock, Inc.’s invest-
ment management business with Merrill Lynch & Co., Inc.’s investment
management business, including Merrill Lynch Investment Managers, L. .,
and certain affiliates, each Fund entered into an Advisory Agreement and
a Subadvisory Agreement, each with an initial two-year term. Consistent
with the 1940 Act, after the Advisory Agreement’s and Subadvisory
Agreement’s respective initial two-year term, the Board is required to
consider the continuation of each Fund’s Advisory Agreement and
Subadvisory Agreement on an annual basis. In connection with this
process, the Board assessed, among other things, the nature, scope and
quality of the services provided to each Fund by the personnel of
BlackRock and its affiliates, including investment advisory services,
administrative services, secondary market support services, oversight of
fund accounting and custody, and assistance in meeting legal and regu-
latory requirements. The Board also received and assessed information
regarding the services provided to each Fund by certain unaffiliated
service providers.

Throughout the year, the Board also considered a range of information in
connection with its oversight of the services provided by BlackRock and
its affiliates. Among the matters the Board considered were: (a) invest-
ment performance for one-, three- and five-year periods, as applicable,
against peer funds, as well as senior management and portfolio man-
agers’ analysis of the reasons for underperformance, if applicable;
(b) fees, including advisory, administration and other fees paid to
BlackRock and its affiliates by each Fund, as applicable; (c) Fund oper-
ating expenses paid to third parties; (d) the resources devoted to and
compliance reports relating to each Fund’s investment objective, policies
and restrictions; (e) each Fund’s compliance with its Code of Ethics and
compliance policies and procedures; (f) the nature, cost and character
of non-investment management services provided by BlackRock and its
affiliates; (g) BlackRock’s and other service providers’ internal controls;
(h) BlackRock’s implementation of the proxy voting guidelines approved
by the Board; (i) execution quality; (j) valuation and liquidity procedures;
and (k) reviews of BlackRock’s business, including BlackRock’s response
to the increasing scale of its business.

Board Considerations in Approving the Advisory
Agreement and Subadvisory Agreement

To assist the Board in its evaluation of the Agreements, the Directors
received information from BlackRock in advance of the April 22, 2008
meeting which detailed, among other things, the organization, business
lines and capabilities of the Advisors, including: (a) the responsibilities
of various departments and key personnel and biographical information
relating to key personnel; (b) financial statements for BlackRock; (c) the
advisory and/or administrative fees paid by each Fund to the Advisors,
including comparisons, compiled by Lipper Inc. (“Lipper”), an independ-
ent third party, with the management fees, which include advisory and
administration fees, of funds with similar investment objectives (“Peers”);
(d) the profitability of BlackRock and certain industry profitability analy-
ses for advisers to registered investment companies; (e) the expenses
of BlackRock in providing various services; (f) non-investment advisory
reimbursements, if applicable, and “fallout” benefits to BlackRock;
(g) economies of scale, if any, generated through the Advisors’ manage-
ment of all of the BlackRock closed-end funds (the “Fund Complex”);
(h) the expenses of each Fund, including comparisons of each such
Fund’s expense ratios (both before and after any fee waivers) with the
expense ratios of its Peers; (i) an internal comparison of management
fees classified by Lipper, if applicable; and (j) each Fund’s performance
for the past one-, three- and five-year periods, as applicable, as well as
each Fund’s performance compared to its Peers.

The Board also considered other matters it deemed important to
the approval process, where applicable, such as payments made to
BlackRock or its affiliates relating to the distribution of Fund shares,
services related to the valuation and pricing of Fund portfolio holdings,
and direct and indirect benefits to BlackRock and its affiliates from their
relationship with the Funds.

ANNUAL REPORT

JULY 31, 2008

41


Disclosure of Investment Advisory Agreement and Subadvisory Agreement (continued)

In addition to the foregoing materials, independent legal counsel to the
Independent Directors provided a legal memorandum outlining, among
other things, the duties of the Board under the 1940 Act, as well as the
general principles of relevant law in reviewing and approving advisory
contracts, the requirements of the 1940 Act in such matters, an adviser’s
fiduciary duty with respect to advisory agreements and compensation,
and the standards used by courts in determining whether investment
company boards of directors have fulfilled their duties and the factors
to be considered by boards in voting on advisory agreements.

The Independent Directors reviewed this information and discussed it
with independent legal counsel prior to the meeting on April 22, 2008.
At the Board meeting on April 22, 2008, BlackRock made a presenta-
tion to and responded to questions from the Board. Following the meet-
ing on April 22, 2008, the Board presented BlackRock with questions
and requests for additional information. BlackRock responded to these
requests with additional written materials provided to the Directors prior
to the meetings on May 29 and 30, 2008. At the Board meetings on
May 29 and 30, 2008, BlackRock responded to further questions from
the Board. In connection with BlackRock’s presentations, the Board con-
sidered each Agreement and, in consultation with independent legal
counsel, reviewed the factors set out in judicial decisions and Securities
and Exchange Commission (“SEC”) statements relating to the renewal
of the Agreements.

Matters Considered by the Board

In connection with its deliberations with respect to the Agreements, the
Board considered all factors it believed relevant with respect to each
Fund, including the following: the nature, extent and quality of the ser-
vices provided by the Advisors; the investment performance of each
Fund; the costs of the services to be provided and profits to be realized
by the Advisors and their affiliates from their relationship with the Funds;
the extent to which economies of scale would be realized as the Fund
Complex grows; and whether BlackRock realizes other benefits from its
relationship with the Funds.

A. Nature, Extent and Quality of the Services: In evaluating the nature,
extent and quality of the Advisors’ services, the Board reviewed informa-
tion concerning the types of services that the Advisors provide and are
expected to provide to each Fund, narrative and statistical information
concerning each Fund’s performance record and how such performance
compares to each Fund’s Peers, information describing BlackRock’s
organization and its various departments, the experience and responsi-
bilities of key personnel and available resources. The Board noted the
willingness of the personnel of BlackRock to engage in open, candid dis-
cussions with the Board. The Board further considered the quality of the
Advisors’ investment process in making portfolio management decisions.

In addition to advisory services, the Directors considered the quality of
the administrative and non-investment advisory services provided to the

Funds. The Advisors and their affiliates provided each Fund with such
administrative and other services, as applicable (in addition to any such
services provided by others for the Funds), and officers and other
personnel as are necessary for the operations of the respective Fund.
In addition to investment management services, the Advisors and their
affiliates provided each Fund with services such as: preparing share-
holder reports and communications, including annual and semi-annual
financial statements and the Funds’ websites; communications with ana-
lysts to support secondary market trading; assisting with daily account-
ing and pricing; preparing periodic filings with regulators and stock
exchanges; overseeing and coordinating the activities of other service
providers; administering and organizing Board meetings and preparing
the Board materials for such meetings; providing legal and compliance
support (such as helping to prepare proxy statements and responding
to regulatory inquiries); and performing other Fund administrative tasks
necessary for the operation of the respective Fund (such as tax reporting
and fulfilling regulatory filing requirements). The Board considered the
Advisors’ policies and procedures for assuring compliance with appli-
cable laws and regulations.

B. The Investment Performance of the Funds and BlackRock: As previ-
ously noted, the Board received performance information regarding each
Fund and its Peers. Among other things, the Board received materials
reflecting each Fund’s historic performance and each Fund’s perform-
ance compared to its Peers. More specifically, each Fund’s one-, three-
and five-year total returns (as applicable) were evaluated relative to its
Peers (including the Peers’ median performance).

The Board reviewed a narrative and statistical analysis of the Lipper
data that was prepared by BlackRock, which analyzed various factors
that affect Lipper rankings.

The Board noted that MFT performed below the median of its Peers in
at least two of the one-, three- and five-year periods reported. The Board
then discussed with representatives of BlackRock the reasons for MFT’s
underperformance during these periods compared with its Peers. The
Board noted that the underperformance of MFT was largely due to its
defensive duration stance in the face of a long-term municipal bond
rally and its inability to invest in non-investment grade securities.

The Board noted that, although MJI underperformed its Peers in at least
two of the one-, three- and five-year periods reported, its underperfor-
mance was not greater than 10% of the median return of its Peers for
any of the periods above and therefore not considered to be material.

For each of MFT and MJI, the Board concluded that BlackRock was com-
mitted to providing the resources necessary to assist the portfolio man-
agers and to continue improving each Fund’s performance. Based on its
review, the Board generally was satisfied with BlackRock’s efforts to
manage each of the Funds.

42 ANNUAL REPORT

JULY 31, 2008


Disclosure of Investment Advisory Agreement and Subadvisory Agreement (continued)

The Board noted that, although MIY underperformed its Peers in at least
two of the one-, three- and five-year periods reported, it outperformed
its Peers in a subset of the Lipper universe in at least two of such
periods based on a customized performance comparison provided by
BlackRock which gives a greater significance to current distributions,
providing a more accurate comparison.

The Board noted that in general MPA performed better than its Peers in
that its performance was at or above the median of its Peers in at least
two of the one-, three- and five-year periods reported.

After considering this information, the Boards concluded that the per-
formance of each Fund, in light of and after considering the other facts
and circumstances applicable to each Fund, supports a conclusion that
each Fund’s Agreements should be renewed.

C. Consideration of the Advisory Fees and the Cost of the Services
and Profits to be Realized by BlackRock and its Affiliates from their
Relationship with the Funds: In evaluating the management fees and
expenses that each Fund is expected to bear, the Board considered
each Fund’s current management fee structure and each Fund’s expense
ratios in absolute terms as well as relative to the fees and expense
ratios of its applicable Peers. The Board, among other things, reviewed
comparisons of each Fund’s gross management fees before and after
any applicable reimbursements and fee waivers and total expense ratios
before and after any applicable waivers with those of applicable Peers.
The Board also reviewed a narrative analysis of the Peer rankings pre-
pared by Lipper and summarized by BlackRock at the request of the
Board. This summary placed the Peer rankings into context by analyzing
various factors that affect these comparisons.

The Board noted that the Funds paid contractual management fees
lower than or equal to the median contractual fees paid by their respec-
tive Peers. This comparison was made without giving effect to any
expense reimbursements or fee waivers.

The Board also compared the management fees charged and services
provided by the Advisors to closed-end funds in general versus other
types of clients (such as open-end investment companies and separa-
tely managed institutional accounts) in similar investment categories.
The Board noted certain differences in services provided and costs
incurred by the Advisor with respect to closed-end funds compared to
these other types of clients and the reasons for such differences.

In connection with the Board’s consideration of the fees and expense
information, the Board reviewed the considerable investment manage-
ment experience of the Advisors and considered the high level of invest-
ment management, administrative and other services provided by the
Advisors. In light of these factors and the other facts and circumstances
applicable to each Fund, the Board concluded that the fees paid and

level of expenses incurred by each Fund under its Agreements support a
conclusion that each Fund’s Agreements should be renewed.

D. Profitability of BlackRock: The Board also considered BlackRock’s
profitability in conjunction with its review of fees. The Board reviewed
BlackRock’s profitability with respect to the Fund Complex and other
fund complexes managed by the Advisors. In reviewing profitability, the
Board recognized that one of the most difficult issues in determining
profitability is establishing a method of allocating expenses. The Board
also reviewed BlackRock’s assumptions and methodology of allocating
expenses, noting the inherent limitations in allocating costs among
various advisory products. The Board also recognized that individual
fund or product line profitability of other advisors is generally not
publicly available.

The Board recognized that profitability may be affected by numerous
factors including, among other things, the types of funds managed,
expense allocations and business mix, and therefore comparability of
profitability is somewhat limited. Nevertheless, to the extent available,
the Board considered BlackRock’s operating margin compared to the
operating margin estimated by BlackRock for a leading investment
management firm whose operations consist primarily of advising closed-
end funds. The comparison indicated that BlackRock’s operating margin
was approximately the same as the operating margin of such firm.

In evaluating the reasonableness of the Advisors’ compensation, the
Board also considered any other revenues paid to the Advisors, including
partial reimbursements paid to the Advisors for certain non-investment
advisory services, if applicable. The Board noted that these payments
were less than the Advisors’ costs for providing these services. The Board
also considered indirect benefits (such as soft dollar arrangements)
that the Advisors and their affiliates are expected to receive, which are
attributable to their management of the Fund.

The Board concluded that BlackRock’s profitability, in light of all the
other facts and circumstances applicable to each Fund, supports a con-
clusion that each Fund’s Agreements should be renewed.

E. Economies of Scale: In reviewing each Fund’s fees and expenses,
the Board examined the potential benefits of economies of scale, and
whether any economies of scale should be reflected in the Fund’s fee
structure, for example through the use of breakpoints for the Fund or the
Fund Complex. In this regard, the Board reviewed information provided
by BlackRock, noting that most closed-end fund complexes do not have
fund-level breakpoints because closed-end funds generally do not expe-
rience substantial growth after their initial public offering and each fund
is managed independently consistent with its own investment objectives.
The Board noted that only three closed-end funds in the Fund Complex
have breakpoints in their fee structures. Information provided by Lipper

ANNUAL REPORT

JULY 31, 2008

43


  Disclosure of Investment Advisory Agreement and Subadvisory Agreement (concluded)

also revealed that only one closed-end fund complex used a complex-
level breakpoint structure. The Board found, based on its review of com-
parable funds, that each Fund’s management fee is appropriate in light
of the scale of the respective Fund.

F. Other Factors: In evaluating fees, the Board also considered indirect
benefits or profits the Advisors or their affiliates may receive as a result
of their relationships with the Funds (“fall-out benefits”). The Directors,
including the Independent Directors, considered the intangible benefits
that accrue to the Advisors and their affiliates by virtue of their relation-
ships with the Funds, including potential benefits accruing to the
Advisors and their affiliates as a result of participating in offerings of
the Funds’ shares, potentially stronger relationships with members of the
broker-dealer community, increased name recognition of the Advisors
and their affiliates, enhanced sales of other investment funds and prod-
ucts sponsored by the Advisors and their affiliates and increased assets
under management which may increase the benefits realized by the
Advisors from soft dollar arrangements with broker-dealers. The Board
also considered the unquantifiable nature of these potential benefits.

Conclusion with Respect to the Agreements

In reviewing the Agreements, the Directors did not identify any single
factor discussed above as all-important or controlling and different
Directors may have attributed different weights to the various factors
considered. The Directors, including the Independent Directors, unani-
mously determined that each of the factors described above, in light of
all the other factors and all of the facts and circumstances applicable
to each respective Fund, was acceptable for each Fund and supported
the Directors’ conclusion that the terms of each Agreement were fair
and reasonable, that each Fund’s fees are reasonable in light of the
services provided to the respective Fund and that each Agreement
should be approved.

44 ANNUAL REPORT

JULY 31, 2008


Automatic Dividend Reinvestment Plan

How the Plan Works — The Funds offer a Dividend Reinvestment Plan
(the “Plan”) under which income and capital gains dividends paid by
a Fund are automatically reinvested in additional Common Shares of the
Fund. The Plan is administered on behalf of the shareholders by The BNY
Mellon Shareowner Services for BlackRock MuniYield Florida Insured
Fund, BlackRock MuniYield Michigan Insured Fund, Inc. and BlackRock
MuniYield New Jersey Insured Fund, Inc. and Computershare Trust
Company, N.A. for BlackRock MuniYield Pennsylvania Insured Fund (indi-
vidually, the “Plan Agent” or together, the “Plan Agents”). Under the Plan,
whenever a Fund declares a dividend, participants in the Plan will
receive the equivalent in Common Shares of the Fund. The Plan Agents
will acquire the shares for the participant’s account either (i) through
receipt of additional unissued but authorized shares of the Funds
(“newly issued shares”) or (ii) by purchase of outstanding Common
Shares on the open market on the New York Stock Exchange or American
Stock Exchange, as applicable or elsewhere. If, on the dividend payment
date, the Fund’s net asset value per share is equal to or less than the
market price per share plus estimated brokerage commissions (a condi-
tion often referred to as a “market premium”), the Plan Agents will invest
the dividend amount in newly issued shares. If the Fund’s net asset
value per share is greater than the market price per share (a condition
often referred to as a “market discount”), the Plan Agents will invest the
dividend amount by purchasing on the open market additional shares.
If the Plan Agents are unable to invest the full dividend amount in open
market purchases, or if the market discount shifts to a market premium
during the purchase period, the Plan Agents will invest any uninvested
portion in newly issued shares. The shares acquired are credited to each
shareholder’s account. The amount credited is determined by dividing the
dollar amount of the dividend by either (i) when the shares are newly
issued, the net asset value per share on the date the shares are issued
or (ii) when shares are purchased in the open market, the average pur-
chase price per share.

Participation in the Plan — Participation in the Plan is automatic, that
is, a shareholder is automatically enrolled in the Plan when he or she
purchases shares of Common Shares of the Funds unless the share-
holder specifically elects not to participate in the Plan. Shareholders
who elect not to participate will receive all dividend distributions in
cash. Shareholders who do not wish to participate in the Plan must
advise their Plan Agent in writing (at the address set forth below) that
they elect not to participate in the Plan. Participation in the Plan is
completely voluntary and may be terminated or resumed at any time
without penalty by writing to the Plan Agent.

Benefits of the Plan — The Plan provides an easy, convenient way for
shareholders to make additional, regular investments in the Funds.
The Plan promotes a long-term strategy of investing at a lower cost. All
shares acquired pursuant to the Plan receive voting rights. In addition, if
the market price plus commissions of a Fund’s shares is above the net
asset value, participants in the Plan will receive shares of the Funds for
less than they could otherwise purchase them and with a cash value
greater than the value of any cash distribution they would have received.
However, there may not be enough shares available in the market to
make distributions in shares at prices below the net asset value. Also,
since the Funds do not redeem shares, the price on resale may be
more or less than the net asset value.

Plan Fees — There are no enrollment fees or brokerage fees for
participating in the Plan. The Plan Agents’ service fees for handling the
reinvestment of distributions are paid for by the Funds. However, broker-
age commissions may be incurred when the Funds purchase shares
on the open market and shareholders will pay a pro rata share of any
such commissions.

Tax Implications — The automatic reinvestment of dividends and distribu-
tions will not relieve participants of any federal, state or local income tax
that may be payable (or required to be withheld) on such dividends.
Therefore, income and capital gains may still be realized even though
shareholders do not receive cash. If, when the Funds’ shares are trading
at a market premium, the Funds issue shares pursuant to the Plan that
have a greater fair market value than the amount of cash reinvested, it is
possible that all or a portion of the discount from the market value
(which may not exceed 5% of the fair market value of the Funds’s
shares) could be viewed as a taxable distribution. If the discount is
viewed as a taxable distribution, it is also possible that the taxable char-
acter of this discount would be allocable to all the shareholders, includ-
ing shareholders who do not participate in the Plan. Thus, shareholders
who do not participate in the Plan might be required to report as ordi-
nary income a portion of their distributions equal to their allocable share
of the discount.

Contact Information — All correspondence concerning the Plan, including
any questions about the Plan, should be directed to the Plan Agent at
The BNY Mellon Shareowner Services, .O. Box 385035, Pittsburgh, PA
15252-8035, Telephone: (800) 432-8224 for BlackRock MuniYield
Florida Insured Fund, BlackRock MuniYield Michigan Insured Fund, Inc.,
BlackRock MuniYield New Jersey Insured Fund, Inc. and Computershare
Trust Company, N.A., .O. Box 43010, Providence, RI 02940-3010,
Telephone: (800) 426-5523 for BlackRock MuniYield Pennsylvania
Insured Fund.

ANNUAL REPORT

JULY 31, 2008

45


Officers and Directors or Trustees         
 
        Length of        Number of     
        Time        BlackRock-     
    Position(s)    Served as        Advised Funds     
Name, Address    Held with    a Director        and Portfolios    Public 
and Year of Birth    Funds    or Trustee2    Principal Occupation(s) During Past 5 Years    Overseen    Directorships 

 
 
 
 
 
 
     Non-Interested Directors or Trustees1                 

 
 
 
 
 
Richard E. Cavanagh    Chairman    Since    Trustee, Aircraft Finance Trust since 1999; Director, The Guardian Life    113 Funds    Arch Chemical 
40 East 52nd Street    of the Board    2007    Insurance Company of America since 1998; Trustee, Educational    110 Portfolios    (chemical and allied 
New York, NY 10022    and Director        Testing Service since 1997; Director, The Fremont Group since 1996;        products) 
1946    or Trustee        Formerly President and Chief Executive Officer of The Conference         
            Board, Inc. (global business research organization) from 1995 to         
            2007.         

 
 
 
 
 
 
Karen P. Robards    Vice Chair of    Since    Partner of Robards & Company, LLC, (financial advisory firm) since    112 Funds    AtriCure, Inc. 
40 East 52nd Street    the Board,    2007    1987; Co-founder and Director of the Cooke Center for Learning and    109 Portfolios    (medical devices); 
New York, NY 10022    Chair of        Development, (a not-for-profit organization) since 1987; Formerly        Care Investment 
1950    the Audit        Director of Enable Medical Corp. from 1996 to 2005; Formerly an        Trust, Inc. (health 
    Committee        investment banker at Morgan Stanley from 1976 to 1987.        care REIT) 
    and Director                 
    or Trustee                 

 
 
 
 
 
 
G. Nicholas Beckwith, III    Director    Since    Chairman and Chief Executive Officer, Arch Street Management, LLC    112 Funds    None 
40 East 52nd Street    or Trustee    2007    (Beckwith Family Foundation) and various Beckwith property companies 109 Portfolios     
New York, NY 10022            since 2005; Chairman of the Board of Directors, University of Pittsburgh         
1945            Medical Center since 2002; Board of Directors, Shady Side Hospital         
            Foundation since 1977; Board of Directors, Beckwith Institute for         
            Innovation In Patient Care since 1991; Member, Advisory Council on         
            Biology and Medicine, Brown University since 2002; Trustee, Claude         
            Worthington Benedum Foundation (charitable foundation) since 1989;         
            Board of Trustees, Chatham University since 1981; Board of Trustees,         
            University of Pittsburgh since 2002; Emeritus Trustee, Shady Side         
            Academy since 1977; Formerly Chairman and Manager, Penn West         
            Industrial Trucks LLC (sales, rental and servicing of material handling         
            equipment) from 2005 to 2007; Formerly Chairman, President and         
            Chief Executive Officer, Beckwith Machinery Company (sales, rental         
            and servicing of construction and equipment) from 1985 to 2005;         
            Formerly Board of Directors, National Retail Properties (REIT) from         
            2006 to 2007.         

 
 
 
 
 
 
Kent Dixon    Director or    Since    Consultant/Investor since 1988.    113 Funds    None 
40 East 52nd Street    Trustee and    2007        110 Portfolios     
New York, NY 10022    Member of                 
1937    the Audit                 
    Committee                 

 
 
 
 
 
 
Frank J. Fabozzi    Director or    Since    Consultant/Editor of The Journal of Portfolio Management since 2006;    113 Funds    None 
40 East 52nd Street    Trustee and    2007    Professor in the Practice of Finance and Becton Fellow, Yale University,    110 Portfolios     
New York, NY 10022    Member of        School of Management, since 2006; Formerly Adjunct Professor of         
1948    the Audit        Finance and Becton Fellow, Yale University from 1994 to 2006.         
    Committee                 

 
 
 
 
 
 
Kathleen F. Feldstein    Director    Since    President of Economics Studies, Inc. (private economic consulting firm)    113 Funds    The McClatchy 
40 East 52nd Street    or Trustee    2007    since 1987; Chair, Board of Trustees, McLean Hospital from 2000    110 Portfolios    Company 
New York, NY 10022            to 2008 and Trustee Emeritus thereof since 2008; Member of the        (newspaper 
1941            Corporation of Partners Community Healthcare, Inc. since 2005;        publishing) 
            Member of the Corporation of Partners HealthCare since 1995;         
            Member of the Corporation of Sherrill House (healthcare) since 1990;         
            Trustee, Museum of Fine Arts, Boston since 1992; Member of the         
            Visiting Committee to the Harvard University Art Museum since 2003;         
            Trustee, The Committee for Economic Development (research organi-         
            zation) since 1990; Member of the Advisory Board to the International         
School of Business, Brandeis University since 2002.

46 ANNUAL REPORT

JULY 31, 2008


Officers and Directors or Trustees (continued)         
 
        Length of        Number of     
        Time        BlackRock-     
    Position(s)    Served as        Advised Funds     
Name, Address    Held with    a Director        and Portfolios    Public 
and Year of Birth    Funds    or Trustee2    Principal Occupation(s) During Past 5 Years    Overseen    Directorships 

 
 
 
 
 
 
     Non-Interested Directors or Trustees1 (concluded)             

 
 
 
 
James T. Flynn    Director or    Since    Formerly Chief Financial Officer of JP Morgan & Co., Inc. from 1990    112 Funds    None 
40 East 52nd Street    Trustee and    2007    to 1995.    109 Portfolios     
New York, NY 10022    Member of                 
1939    the Audit                 
    Committee                 

 
 
 
 
 
 
Jerrold B. Harris    Director    Since    Trustee, Ursinus College since 2000; Director, Troemner LLC (scientific    112 Funds    BlackRock-Kelso 
40 East 52nd Street    or Trustee    2007    equipment) since 2000.    109 Portfolios    Capital Corp. 
New York, NY 10022                     
1942                     

 
 
 
 
 
R. Glenn Hubbard    Director    Since    Dean of Columbia Business School since 2004; Columbia faculty    113 Funds    ADP (data and 
40 East 52nd Street    or Trustee    2007    member since 1988; Formerly Co-Director of Columbia Business    110 Portfolios    information services), 
New York, NY 10022            School's Entrepreneurship Program from 1997 to 2004; Visiting        KKR Financial 
1958            Professor at the John F. Kennedy School of Government at Harvard        Corporation (finance), 
            University and the Harvard Business School since 1985 and at the        Duke Realty (real 
            University of Chicago since 1994; Formerly Chairman of the U.S.        estate), Metropolitan 
            Council of Economic Advisers under the President of the United        Life Insurance Com- 
            States from 2001 to 2003.        pany (insurance), 
                    Information Services 
                    Group (media/ 
                    technology) 

 
 
 
 
 
 
W. Carl Kester    Director or    Since    Mizuho Financial Group Professor of Finance, Harvard Business School.    112 Funds    None 
40 East 52nd Street    Trustee and    2007    Deputy Dean for Academic Affairs since 2006; Unit Head, Finance,    109 Portfolios     
New York, NY 10022    Member of        Harvard Business School, from 2005 to 2006; Senior Associate Dean         
1951    the Audit        and Chairman of the MBA Program of Harvard Business School,         
    Committee        from 1999 to 2005; Member of the faculty of Harvard Business         
            School since 1981; Independent Consultant since 1978.         

 
 
 
 
 
 
Robert S. Salomon, Jr.    Director or    Since    Formerly Principal of STI Management LLC (investment adviser) from    112 Funds    None 
40 East 52nd Street    Trustee and    2007    1994 to 2005.    109 Portfolios     
New York, NY 10022    Member of                 
1936    the Audit                 
    Committee                 
   
 
 
 
 
 
    1 Directors or Trustees serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.     
    2 Following the combination of Merrill Lynch Investment Managers, L P (“MLIM”) and BlackRock, Inc. (“BlackRock”) in September 2006, the 
       various legacy MLIM and legacy BlackRock Fund boards were realigned and consolidated into three new Fund boards in 2007. As a result, 
       although the chart shows directors as joining the Fund’s board in 2007, each director first became a member of the board of directors of other 
       legacy MLIM or legacy BlackRock Funds as follows: G. Nicholas Beckwith, III since 1999; Richard E. Cavanagh since 1994; Kent Dixon since 
       1988; Frank J. Fabozzi since 1988; Kathleen F. Feldstein since 2005; James T. Flynn since 1996; Jerrold B. Harris since 1999; R. Glenn 
       Hubbard since 2004; W. Carl Kester since 1998; Karen . Robards since 1998 and Robert S. Salomon, Jr. since 1996.     

 
 
 
     Interested Directors or Trustees3                 

 
 
 
 
 
Richard S. Davis    Director    Since    Managing Director, BlackRock, Inc. since 2005; Formerly Chief    185 Funds    None 
40 East 52nd Street    or Trustee    2007    Executive Officer, State Street Research & Management Company    295 Portfolios     
New York, NY 10022            from 2000 to 2005; Formerly Chairman of the Board of Trustees,         
1945            State Street Research Mutual Funds from 2000 to 2005; Formerly         
            Chairman, SSR Realty from 2000 to 2004.         

 
 
 
 
 
 
Henry Gabbay    Director    Since    Consultant, BlackRock, Inc. since 2007; Formerly Managing Director,    184 Funds    None 
40 East 52nd Street    or Trustee    2007    BlackRock, Inc. from 1989 to 2007; Formerly Chief Administrative    294 Portfolios     
New York, NY 10022            Officer, BlackRock Advisors, LLC from 1998 to 2007; Formerly President         
1947            of BlackRock Funds and BlackRock Bond Allocation Target Shares from         
            2005 to 2007; Formerly Treasurer of certain closed-end funds in the         
            BlackRock fund complex from 1989 to 2006.         
   
 
     
 

3      Messrs. Davis and Gabbay are both “interested persons,” as defined in the Investment Company Act of 1940, of the Funds based on their positions with BlackRock, Inc. and its affiliates. Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.
 

ANNUAL REPORT

JULY 31, 2008

47


Officers and Directors or Trustees (concluded)     
 
    Position(s)                 
Name, Address    Held with    Length of             
and Year of Birth    Funds    Time Served    Principal Occupation(s) During Past 5 Years     

 
 
 
 
 
Fund Officers1                     

 
 
 
 
 
Donald C. Burke    Fund    Since 2007    Managing Director of BlackRock, Inc. since 2006; Formerly Managing Director of Merrill Lynch Investment 
40 East 52nd Street    President        Managers, LP (“MLIM”) and Fund Asset Management, LP (“FAM”) in 2006; First Vice President thereof from 
New York, NY 10022    and Chief        1997 to 2005; Treasurer thereof from 1999 to 2006 and Vice President thereof from 1990 to 1997. 
1960    Executive                 
    Officer                 

 
 
 
 
 
Anne F. Ackerley    Vice    Since 2007    Managing Director of BlackRock, Inc. since 2000; Chief Operating Officer of BlackRock’s U.S. Retail Group since 
40 East 52nd Street    President        2006; Head of BlackRock’s Mutual Fund Group from 2000 to 2006; Merrill Lynch & Co., Inc. from 1984 to 1986 
New York, NY 10022            and from 1988 to 2000, most recently as First Vice President and Operating Officer of the Mergers and 
1962            Acquisitions Group.     

 
 
 
 
Neal J. Andrews    Chief    Since 2007    Managing Director of BlackRock, Inc. since 2006; Formerly Senior Vice President and Line of Business Head of 
40 East 52nd Street    Financial        Fund Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. (formerly PFPC Inc.) from 
New York, NY 10022    Officer        1992 to 2006.         
1966                     

 
 
 
 
 
Jay M. Fife    Treasurer    Since 2007    Managing Director of BlackRock, Inc. since 2007 and Director in 2006; Formerly Assistant Treasurer of the 
40 East 52nd Street            MLIM/FAM advised funds from 2005 to 2006; Director of MLIM Fund Services Group from 2001 to 2006. 
New York, NY 10022                     
1970                     

 
 
 
 
 
Brian P. Kindelan    Chief    Since 2007    Chief Compliance Officer of the BlackRock-advised Funds since 2007; Anti-Money Laundering Officer of the 
40 East 52nd Street    Compliance        BlackRock-advised Funds since 2007; Managing Director and Senior Counsel of BlackRock, Inc. since 2005; 
New York, NY 10022    Officer of        Director and Senior Counsel ofBlackRock Advisors, Inc. from 2001 to 2004 and Vice President and Senior Counsel 
1959    the Funds        thereof from 1998 to 2000; Formerly Senior Counsel of The PNC Bank Corp. from 1995 to 1998. 

 
 
 
Howard Surloff    Secretary    Since 2007    Managing Director of BlackRock, Inc. and General Counsel of U.S. Funds at BlackRock, Inc. since 2006; Formerly 
40 East 52nd Street            General Counsel (U.S.) of Goldman Sachs Asset Management, L from 1993 to 2006. 
New York, NY 10022                     
1965                     
   
 
 
 
 
    1 Officers of the Funds serve at the pleasure of the Board of Directors or Trustees.     

 
 
 
For All Funds                     
Accounting Agent               Independent Registered Public    Legal Counsel     
State Street Bank and               Accounting Firm        Skadden, Arps, Slate Meagher & Flom LLP 
Trust Company               Deloitte & Touche LLP        New York, NY 10036     
Princeton, NJ 08540               Princeton, NJ 08540             
 
BlackRock MuniYield Pennsylvania Insured Fund        BlackRock MuniYield Florida Insured Fund 
Custodian               Transfer Agents        BlackRock MuniYield Michigan Insured Fund, Inc. 
State Street Bank and               Common Shares:        BlackRock MuniYield New Jersey Insured Fund, Inc. 
Trust Company               Computershare Trust        Custodian    Transfer Agents 
Boston, MA 02101               Company, N.A.        The Bank of New York Mellon    Common Shares and 
               Providence, RI 02940        New York, NY 10286    Preferred Shares: 
               Preferred Shares:            BNY Mellon Shareowner Services 
               BNY Mellon Shareowner Services        Jersey City, NJ 07310 
               Jersey City, NJ 07310             

48 ANNUAL REPORT

JULY 31, 2008


Additional Information

Dividend Policy

The Funds dividend policy is to distribute all or a portion of their net
investment income to their shareholders on a monthly basis. In order to
provide shareholders with a more stable level of dividend distributions,
the Funds may at times pay out less than the entire amount of net invest-
ment income earned in any particular month and may at times in any
particular month pay out such accumulated but undistributed income in
addition to net investment income earned in that month. As a result, the

dividends paid by the Funds for any particular month may be more or
less than the amount of net investment income earned by the Funds
during such month. The Funds’ current accumulated but undistributed
net investment income, if any, is disclosed in the Statements of Assets
and Liabilities, which comprises part of the financial information included
in this report.

Fund Certification

The Funds are listed for trading on the New York Stock Exchange (“NYSE”)
and have filed with the NYSE their annual chief executive officer certifica-
tion regarding compliance with the NYSE’s listing standards. Each Fund

filed with the Securities and Exchange Commission (“SEC”) the certifica-
tion of their chief executive officer and chief financial officer required by
section 302 of the Sabanes-Oxley Act.

Availability of Quarterly Schedule of Investments

The Funds file their complete schedule of portfolio holdings with the SEC
for the first and third quarters of each fiscal year on Form N-Q. The Funds’
Forms N-Q are available on the SEC’s website at http://www.sec.gov and
may also be reviewed and copied at the SEC’s Public Reference Room

in Washington, DC. Information on the operation of the Public Reference
Room may be obtained by calling (800) SEC-0330. The Funds’ Forms
N-Q may also be obtained upon request and without charge by calling
(800) 441-7762.

Electronic Delivery

Electronic copies of most financial reports are available on the Funds’
websites or shareholders can sign up for e-mail notifications of quarterly
statements, annual and semi-annual reports by enrolling in the Funds’
electronic delivery program.

Shareholders Who Hold Accounts with Investment Advisors, Banks
or Brokerages:

Please contact your financial advisor to enroll. Please note that not all
investment advisors, banks or brokerages may offer this service.

General Information

The Funds do not make available copies of their Statements of Additional
Information because the Funds’ shares are not continuously offered,
which means that the Statements of Additional Information of the Funds
have not been updated after completion of the Funds’ offering and the
information contained in the Funds’ Statements of Additional Information
may have become outdated.

During the period, there were no material changes in the Funds’ invest-
ment objectives or policies or to the Funds’ charters or by-laws that were
not approved by the shareholders or in the principal risk factors associ-
ated with investment in the Funds. There have been no changes in the
persons who are primarily responsible for the day-to-day management of
the Funds’ portfolios.

The Funds will mail only one copy of shareholder documents, including
annual and semi-annual reports and proxy statements, to shareholders
with multiple accounts at the same address. This practice is commonly
called “householding” and it is intended to reduce expenses and elimi-
nate duplicate mailings of shareholder documents. Mailings of your
shareholder documents may be householded indefinitely unless you
instruct us otherwise. If you do not want the mailing of these documents
to be combined with those for other members of your household, please
contact the Funds at (800) 441-7762.

Quarterly performance, semi-annual and annual reports and other
information regarding the Funds may be found on BlackRock’s website,
which can be accessed at http://www.blackrock.com. This reference
to BlackRock’s website is intended to allow investors public access to
information regarding the Funds and does not, and is not intended to,
incorporate BlackRock’s website into this report.

ANNUAL REPORT JULY 31, 2008 49


Additional Information (concluded)

Deposit Securities

Effective May 30, 2008, following approval by the Funds’ Boards and the
applicable ratings agencies, the definition of “Deposit Securities” in the
Funds’ Articles Supplementary/Certificate of Designation was amended
as follows in order to facilitate the redemption of the Funds’ Preferred
Shares. The following phrase was added to the definition of “Deposit
Securities” found in the Funds’ Articles Supplementary/Certificate
of Designation:

; provided, however, that solely in connection with any redemption of
Preferred Shares, the term Deposit Securities shall include (i) any
committed financing pursuant to a credit agreement, reverse repur-

chase agreement facility or similar credit arrangement, in each case
which makes available to the Fund, no later than the day preceding
the applicable redemption date, cash in an amount not less than the
aggregate amount due to Holders by reason of the redemption of their
Preferred Shares on such redemption date; and (ii) cash amounts
due and payable to the Corporation out of a sale of its securities if
such cash amount is not less than the aggregate amount due to
Holders by reason of the redemption of their Preferred Shares on
such redemption date and such sale will be settled not later than
the day preceding the applicable redemption date.

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and
former fund investors and individual clients (collectively, “Clients”) and to
safeguarding their non-public personal information. The following infor-
mation is provided to help you understand what personal information
BlackRock collects, how we protect that information and why in certain
cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations
require BlackRock to provide you with additional or different privacy-
related rights beyond what is set forth below, then BlackRock will comply
with those specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and
about you from different sources, including the following: (i) information
we receive from you or, if applicable, your financial intermediary, on appli-
cations, forms or other documents; (ii) information about your transac-
tions with us, our affiliates, or others; (iii) information we receive from a
consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-
public personal information about its Clients, except as permitted by law
or as is necessary to respond to regulatory requests or to service Client
accounts. These non-affiliated third parties are required to protect the
confidentiality and security of this information and to use it only for its
intended purpose.

We may share information with our affiliates to service your account or to
provide you with information about other BlackRock products or services
that may be of interest to you. In addition, BlackRock restricts access to
non-public personal information about its Clients to those BlackRock
employees with a legitimate business need for the information. BlackRock
maintains physical, electronic and procedural safeguards that are
designed to protect the non-public personal information of its Clients,
including procedures relating to the proper storage and disposal of
such information.

Proxy Voting Policy

The Boards of the Funds have delegated the voting of proxies for Fund
securities to the Advisor pursuant to the Advisor’s proxy voting guidelines.
Under these guidelines, the Advisor will vote proxies related to Fund secu-
rities in the best interests of each Fund and its stockholders. From time to
time, a vote may present a conflict between the interests of the Funds’
stockholders, on the one hand, and those of the Advisor, or any affiliated
person of the Funds or the Advisor, on the other. In such event, provided
that the Advisor’s Equity Investment Policy Oversight Committee, or a sub-
committee thereof (the “Committee”) is aware of the real or potential
conflict or material non-routine matter and if the Committee does not

reasonably believe it is able to follow its general voting guidelines (or if
the particular proxy matter is not addressed in the guidelines) and vote
impartially, the Committee may retain an independent fiduciary to
advise the Committee on how to vote or to cast votes on behalf of the
Advisor’s clients. If the Advisor determines not to retain an independent
fiduciary, or does not desire to follow the advice of such independent
fiduciary, the Committee shall determine how to vote the proxy after
consulting with the Advisor’s Portfolio Management Group and/or the
Advisor’s Legal and Compliance Department and concluding that the vote
is in its client’s best interest notwithstanding the conflict.

50 ANNUAL REPORT JULY 31, 2008



This report is transmitted to shareholders only. It is not a prospec-
tus. Past performance results shown in this report should not be
considered a representation of future performance. The Funds have
leveraged their Common Shares, which creates risks for Common
Shareholders, including the likelihood of greater volatility of net
asset value and market price of the Common Shares, and the risk
that fluctuations in the short-term dividend rates of the Preferred
Shares, currently set at the maximum reset rate as a result of
failed auctions, may affect the yield to Common Shareholders.
Statements and other information herein are as dated and are
subject to change.

A description of the policies and procedures that the Funds use
to determine how to vote proxies relating to portfolio securities
is available (1) without charge, upon request, by calling toll-free
(800) 441-7762; (2) at www.blackrock.com; and (3) on the Secu-
rities and Exchange Commission’s website at http://www.sec.gov.
Information about how the Funds voted proxies relating to securities
held in the Funds’ portfolios during the most recent 12-month
period ended June 30 is available upon request and without charge
(1) at www.blackrock.com or by calling (800) 441-7762 and
(2) on the Securities and Exchange Commission’s website at
http://www.sec.gov.

BlackRock MuniYield Florida Insured Fund

BlackRock MuniYield Michigan Insured Fund, Inc.

BlackRock MuniYield New Jersey Insured Fund, Inc.

BlackRock MuniYield Pennsylvania Insured Fund

100 Bellevue Parkway

Wilmington, DE 19809

#MY4-7/08


Item 2 – Code of Ethics – The registrant (or the “Fund”) has adopted a code of ethics, as of the end
of the period covered by this report, applicable to the registrant’s principal executive officer,
principal financial officer and principal accounting officer, or persons performing similar
functions. During the period covered by this report, there have been no amendments to or
waivers granted under the code of ethics. A copy of the code of ethics is available without
charge at www.blackrock.com.

Item 3 – Audit Committee Financial Expert – The registrant’s board of directors or trustees, as
applicable (the “board of directors”) has determined that (i) the registrant has the following
audit committee financial experts serving on its audit committee and (ii) each audit
committee financial expert is independent:
Donald W. Burton (term ended effective November 1, 2007)
Kent Dixon (term began effective November 1, 2007)
Frank J. Fabozzi (term began effective November 1, 2007)
James T. Flynn (term began effective November 1, 2007)
W. Carl Kester (term began effective November 1, 2007)
John F. O’Brien (term ended effective November 1, 2007)
Karen P. Robards (term began effective November 1, 2007)
Robert S. Salomon, Jr. (term began effective November 1, 2007)
David H. Walsh (term ended effective November 1, 2007)
Fred G. Weiss (term ended effective November 1, 2007)

The registrant’s board of directors has determined that W. Carl Kester and Karen P. Robards
qualify as financial experts pursuant to Item 3(c)(4) of Form N-CSR.

Prof. Kester has a thorough understanding of generally accepted accounting principles,
financial statements and internal control over financial reporting as well as audit committee
functions. Prof. Kester has been involved in providing valuation and other financial
consulting services to corporate clients since 1978. Prof. Kester’s financial consulting
services present a breadth and level of complexity of accounting issues that are generally
comparable to the breadth and complexity of issues that can reasonably be expected to be
raised by the registrant’s financial statements.

Ms. Robards has a thorough understanding of generally accepted accounting principles,
financial statements and internal control over financial reporting as well as audit committee
functions. Ms. Robards has been President of Robards & Company, a financial advisory
firm, since 1987. Ms. Robards was formerly an investment banker for more than 10 years
where she was responsible for evaluating and assessing the performance of companies based
on their financial results. Ms. Robards has over 30 years of experience analyzing financial
statements. She also is a member of the audit committee of one publicly held company and
a non-profit organization.

Under applicable securities laws, a person determined to be an audit committee financial
expert will not be deemed an “expert” for any purpose, including without limitation for the
purposes of Section 11 of the Securities Act of 1933, as a result of being designated or
identified as an audit committee financial expert. The designation or identification as an
audit committee financial expert does not impose on such person any duties, obligations, or
liabilities greater than the duties, obligations, and liabilities imposed on such person as a
member of the audit committee and board of directors in the absence of such designation or
identification.


  Item 4 – Principal Accountant Fees and Services

             (a) Audit Fees     (b) Audit-Related Fees1               (c) Tax Fees2         (d) All Other Fees3 

 
 
 
 
    Current    Previous    Current    Previous    Current    Previous    Current    Previous 
    Fiscal Year    Fiscal Year    Fiscal Year    Fiscal Year    Fiscal Year    Fiscal Year    Fiscal Year    Fiscal Year 
     Entity Name    End    End    End    End    End    End    End    End 

 
 
 
 
 
 
 
 
 
BlackRock                                 
MuniYield                                 
Pennsylvania    $25,900    $51,350    $3,500    $3,500    $6,100    $6,100    $1,049    $1,042 
Insured Fund                                 

 
 
 
 
 
 
 
 

1 The nature of the services include assurance and related services reasonably related to the performance of the audit of
financial statements not included in Audit Fees.
2 The nature of the services include tax compliance, tax advice and tax planning.
3 The nature of the services include a review of compliance procedures and attestation thereto.

(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The registrant’s audit committee (the “Committee”) has adopted policies and
procedures with regard to the pre-approval of services. Audit, audit-related and tax
compliance services provided to the registrant on an annual basis require specific pre-
approval by the Committee. The Committee also must approve other non-audit services
provided to the registrant and those non-audit services provided to the registrant’s affiliated
service providers that relate directly to the operations and the financial reporting of the
registrant. Certain of these non-audit services that the Committee believes are a) consistent
with the SEC’s auditor independence rules and b) routine and recurring services that will
not impair the independence of the independent accountants may be approved by the
Committee without consideration on a specific case-by-case basis (“general pre-approval”).
The term of any general pre-approval is 12 months from the date of the pre-approval, unless
the Committee provides for a different period. Tax or other non-audit services provided to
the registrant which have a direct impact on the operation or financial reporting of the
registrant will only be deemed pre-approved provided that any individual project does not
exceed $10,000 attributable to the registrant or $50,000 for all of the registrants the
Committee oversees. For this purpose, multiple projects will be aggregated to determine if
they exceed the previously mentioned cost levels.
Any proposed services exceeding the pre-approved cost levels will require specific
pre-approval by the Committee, as will any other services not subject to general pre-
approval (e.g., unanticipated but permissible services). The Committee is informed of each
service approved subject to general pre-approval at the next regularly scheduled in-person
board meeting. At this meeting, an analysis of such services is presented to the Committee
for ratification. The Committee may delegate to one or more of its members the authority to
approve the provision of and fees for any specific engagement of permitted non-audit
services, including services exceeding pre-approved cost levels.

(e)(2) None of the services described in each of Items 4(b) through (d) were approved by
the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not Applicable

(g) Affiliates’ Aggregate Non-Audit Fees:

    Current Fiscal Year    Previous Fiscal Year 
               Entity Name    End    End 

 
 
 
 
BlackRock MuniYield    $298,149    $295,142 
Pennsylvania Insured Fund         

 
 


(h) The registrant’s audit committee has considered and determined that the provision of
non-audit services that were rendered to the registrant’s investment adviser (not including
any non-affiliated sub-adviser whose role is primarily portfolio management and is
subcontracted with or overseen by the registrant’s investment adviser), and any entity
controlling, controlled by, or under common control with the investment adviser that
provides ongoing services to the registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant’s independence.

Regulation S-X Rule 2-01(c)(7)(ii) – $287,500, 0%

Item 5 – Audit Committee of Listed Registrants – The following individuals are members of the
registrant’s separately-designated standing audit committee established in accordance with
Section 3(a)(58)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(58)(A)):

Donald W. Burton (term ended effective November 1, 2007)
Kent Dixon (term began effective November 1, 2007)
Frank J. Fabozzi (term began effective November 1, 2007)
James T. Flynn (term began effective November 1, 2007)
W. Carl Kester (term began effective November 1, 2007)
John F. O’Brien (term ended effective November 1, 2007)
Karen P. Robards (term began effective November 1, 2007)
Robert S. Salomon, Jr. (term began effective November 1, 2007)
David H. Walsh (term ended effective November 1, 2007)
Fred G. Weiss (term ended effective November 1, 2007)

Item 6 – Investments
(a) The registrant’s Schedule of Investments is included as part of the Report to
Stockholders filed under Item 1 of this form.
(b) Not Applicable due to no such divestments during the semi-annual period covered since
the previous Form N-CSR filing.

Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management
Investment Companies – The Board of Directors of the Fund has delegated the voting of
proxies for the Fund securities to the Investment Adviser pursuant to the Investment
Adviser’s proxy voting guidelines. Under these guidelines, the Investment Adviser will vote
proxies related to Fund securities in the best interests of the Fund and its stockholders. From
time to time, a vote may present a conflict between the interests of the Fund’s stockholders,
on the one hand, and those of the Investment Adviser, or any affiliated person of the Fund or
the Investment Adviser, on the other. In such event, provided that the Investment Adviser’s
Equity Investment Policy Oversight Committee, or a sub-committee thereof (the
“Committee”) is aware of the real or potential conflict or material non-routine matter and if
the Committee does not reasonably believe it is able to follow its general voting guidelines
(or if the particular proxy matter is not addressed in the guidelines) and vote impartially, the
Committee may retain an independent fiduciary to advise the Committee on how to vote or
to cast votes on behalf of the Investment Adviser’s clients. If the Investment Adviser
determines not to retain an independent fiduciary, or does not desire to follow the advice of
such independent fiduciary, the Committee shall determine how to vote the proxy after
consulting with the Investment Adviser’s Portfolio Management Group and/or the
Investment Adviser’s Legal and Compliance Department and concluding that the vote cast


is in its client’s best interest notwithstanding the conflict. A copy of the Fund’s Proxy
Voting Policy and Procedures are attached as Exhibit 99.PROXYPOL. Information on how
the Fund voted proxies relating to portfolio securities during the most recent 12-month
period ended June 30 is available without charge, (i) at www.blackrock.com and (ii) on the
SEC’s website at http://www.sec.gov.

Item 8 – Portfolio Managers of Closed-End Management Investment Companies – as of July 31,
2008.

(a)(1) BlackRock Investment Quality Municipal Income Trust is managed by a team of
investment professionals comprised of William R. Bock, Theodore R. Jaeckel and Walter
O’Connor. Each is a member of BlackRock’s municipal tax-exempt management group.
Each is jointly responsible for the day-to-day management of the Fund’s portfolio, which
includes setting the Fund’s overall investment strategy, overseeing the management of the
Fund and/or selection of its investments. Messrs. Jaeckel and O’Connor have been members
of the Fund’s management team since 2006. Mr. Bock has been a member of the Fund’s
management team since 1997.

Mr. Jaeckel joined BlackRock in 2006. Prior to joining BlackRock, he was a Managing
Director (Municipal Tax-Exempt Fund Management) of Merrill Lynch Investment
Managers, L.P. (“MLIM”) from 2005 to 2006 and a Director of MLIM from 1997 to 2005.
He has been a portfolio manager with BlackRock or MLIM since 1991.

Mr. O’Connor joined BlackRock in 2006. Prior to joining BlackRock, he was a Managing
Director (Municipal Tax-Exempt Fund Management) of MLIM from 2003 to 2006 and was
a Director of MLIM from 1997 to 2002. He has been a portfolio manager with BlackRock or
MLIM since 1991.

Mr. Bock joined BlackRock in 2006. Prior to joining BlackRock, he was a Director
(Municipal Tax-Exempt Fund Management) of MLIM from 2005 to 2006. He has been
a portfolio manager with BlackRock or MLIM since 1989.

(a)(2) As of July 31, 2008:

    Number of Other Accounts Managed    Number of Other Accounts and 
    and Assets by Account Type        Assets for Which Advisory Fee is 
                    Performance-Based     

 
 
 
 
 
 
    Other    Other Pooled        Other    Other Pooled     
Name of    Registered    Investment    Other    Registered    Investment    Other 
Portfolio Manager    Investment    Vehicles    Accounts    Investment    Vehicles    Accounts 
    Companies            Companies         

 
 
 
 
 
 
William R. Bock    3    0    0    0    0    0 

 
 
 
 
 
 
    $1.45 Billion    $0    $0    $0    $0    $0 

 
 
 
 
 
 
Theodore R. Jaeckel, Jr.    81    0    0    0    0    0 

 
 
 
 
 
 
    $19.33 Billion    $0    $0    $0    $0    $0 

 
 
 
 
 
 
Walter O’Connor    81    0    0    0    0    0 

 
 
 
 
 
 
    $19.33 Billion    $0    $0    $0    $0    $0 

 
 
 
 
 
 

  (iv) Potential Material Conflicts of Interest

BlackRock, Inc. and its affiliates (collectively, herein “BlackRock”) has built a professional
working environment, firm-wide compliance culture and compliance procedures and


systems designed to protect against potential incentives that may favor one account over
another. BlackRock has adopted policies and procedures that address the allocation of
investment opportunities, execution of portfolio transactions, personal trading by employees
and other potential conflicts of interest that are designed to ensure that all client accounts are
treated equitably over time. Nevertheless, BlackRock furnishes investment management and
advisory services to numerous clients in addition to the Fund, and BlackRock may,
consistent with applicable law, make investment recommendations to other clients or
accounts (including accounts which are hedge funds or have performance or higher fees
paid to BlackRock, or in which portfolio managers have a personal interest in the receipt of
such fees), which may be the same as or different from those made for the Fund. In
addition, BlackRock, its affiliates and any officer, director, stockholder or employee may or
may not have an interest in the securities whose purchase and sale BlackRock recommends
to the Fund. BlackRock, or any of its affiliates, or any officer, director, stockholder,
employee or any member of their families may take different actions than those
recommended to the Fund by BlackRock with respect to the same securities. Moreover,
BlackRock may refrain from rendering any advice or services concerning securities of
companies of which any of BlackRock’s (or its affiliates’) officers, directors or employees
are directors or officers, or companies as to which BlackRock or any of its affiliates or the
officers, directors or employees of any of them has any substantial economic interest or
possesses material non-public information. Each portfolio manager also may manage
accounts whose investment strategies may at times be opposed to the strategy utilized for a
fund. In this regard, it should be noted that a portfolio manager may currently manage
certain accounts that are subject to performance fees. In addition, a portfolio manager may
assist in managing certain hedge funds and may be entitled to receive a portion of any
incentive fees earned on such funds and a portion of such incentive fees may be voluntarily
or involuntarily deferred. Additional portfolio managers may in the future manage other
such accounts or funds and may be entitled to receive incentive fees.

As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client
fairly. When BlackRock purchases or sells securities for more than one account, the trades
must be allocated in a manner consistent with its fiduciary duties. BlackRock attempts to
allocate investments in a fair and equitable manner among client accounts, with no account
receiving preferential treatment. To this end, BlackRock has adopted a policy that is
intended to ensure that investment opportunities are allocated fairly and equitably among
client accounts over time. This policy also seeks to achieve reasonable efficiency in client
transactions and provide
BlackRock with sufficient flexibility to allocate investments in a manner that is consistent
with the particular investment discipline and client base.

(a)(3) As of July 31, 2008:

Portfolio Manager Compensation Overview

BlackRock’s financial arrangements with its portfolio managers, its competitive
compensation and its career path emphasis at all levels reflect the value senior management
places on key resources. Compensation may include a variety of components and may vary
from year to year based on a number of factors. The principal components of compensation
include a base salary, a performance-based discretionary bonus, participation in various
benefits programs and one or more of the incentive compensation programs established by
BlackRock such as its Long-Term Retention and Incentive Plan.


Base compensation. Generally, portfolio managers receive base compensation based on
their seniority and/or their position with the firm. Senior portfolio managers who perform
additional management functions within the portfolio management group or within
BlackRock may receive additional compensation for serving in these other capacities.

Discretionary Incentive Compensation
Discretionary incentive compensation is a function of several components: the performance
of BlackRock, Inc., the performance of the portfolio manager’s group within BlackRock,
the investment performance, including risk-adjusted returns, of the firm’s assets under
management or supervision by that portfolio manager relative to predetermined
benchmarks, and the individual’s seniority, role within the portfolio management team,
teamwork and contribution to the overall performance of these portfolios and BlackRock.
In most cases, including for the portfolio managers of the Fund, these benchmarks are the
same as the benchmark or benchmarks against which the performance of the Fund or other
accounts managed by the portfolio managers are measured. BlackRock’s Chief Investment
Officers determine the benchmarks against which the performance of funds and other
accounts managed by each portfolio manager is compared and the period of time over which
performance is evaluated. With respect to the portfolio managers, such benchmarks for the
Fund include a combination of market-based indices (e.g. Lehman Brothers Municipal Bond
Index), certain customized indices and certain fund industry peer groups.

BlackRock’s Chief Investment Officers make a subjective determination with respect to the
portfolio managers’ compensation based on the performance of the funds and other accounts
managed by each portfolio manager relative to the various benchmarks noted above.
Performance is measured on both a pre-tax and after-tax basis over various time periods
including 1, 3, 5 and 10-year periods, as applicable.

Distribution of Discretionary Incentive Compensation
Discretionary incentive compensation is distributed to portfolio managers in a combination
of cash and BlackRock, Inc. restricted stock units which vest ratably over a number of
years. The BlackRock, Inc. restricted stock units, if properly vested, will be settled in
BlackRock, Inc. common stock. Typically, the cash bonus, when combined with base
salary, represents more than 60% of total compensation for the portfolio managers. Paying
a portion of annual bonuses in stock puts compensation earned by a portfolio manager for a
given year “at risk” based on BlackRock’s ability to sustain and improve its performance
over future periods.

Long-Term Retention and Incentive Plan (“LTIP”) — The LTIP is a long-term
incentive plan that seeks to reward certain key employees. Beginning in 2006, awards are
granted under the LTIP in the form of BlackRock, Inc. restricted stock units that, if properly
vested and subject to the attainment of certain performance goals, will be settled in
BlackRock, Inc. common stock. Each portfolio manager except Mr. Bock has received
awards under the LTIP.

Deferred Compensation Program — A portion of the compensation paid to eligible
BlackRock employees may be voluntarily deferred into an account that tracks the
performance of certain of the firm’s investment products. Each participant in the deferred
compensation program is permitted to allocate his deferred amounts among the various
investment options. Each portfolio manager has participated in the deferred compensation
program.


Other compensation benefits. In addition to base compensation and discretionary
incentive compensation, portfolio managers may be eligible to receive or participate in one
or more of the following:

Incentive Savings Plans — BlackRock, Inc. has created a variety of incentive
savings plans in which BlackRock employees are eligible to participate, including a
401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the BlackRock Employee
Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a
company match equal to 50% of the first 6% of eligible pay contributed to the plan capped
at $4,000 per year, and a company retirement contribution equal to 3% of eligible
compensation, plus an additional contribution of 2% for any year in which BlackRock has
positive net operating income. The RSP offers a range of investment options, including
registered investment companies managed by the firm. BlackRock contributions follow the
investment direction set by participants for their own contributions or, absent employee
investment direction, are invested into a balanced portfolio. The ESPP allows for
investment in BlackRock common stock at a 5% discount on the fair market value of the
stock on the purchase date. Annual participation in the ESPP is limited to the purchase of
1,000 shares or a dollar value of $25,000. Each portfolio manager is eligible to participate
in these plans.

(a)(4) Beneficial Ownership of Securities. As of July 31, 2008, none of Messrs. Bock,
Jaeckel or O’Connor beneficially owned any stock issued by the Fund.

Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and
Affiliated Purchasers – Not Applicable due to no such purchases during the period covered
by this report.

Item 10 – Submission of Matters to a Vote of Security Holders – The registrant’s Nominating and
Governance Committee will consider nominees to the board of directors recommended by
shareholders when a vacancy becomes available. Shareholders who wish to recommend a
nominee should send nominations that include biographical information and set forth the
qualifications of the proposed nominee to the registrant’s Secretary. There have been no
material changes to these procedures.

Item 11 – Controls and Procedures

11(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.

11(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 second fiscal quarter
of the period covered by this report that have materially affected, or are reasonably likely to
materially affect, the registrant’s internal control over financial reporting.

Item 12 – Exhibits attached hereto

12(a)(1) – Code of Ethics – See Item 2


12(a)(2) – Certifications – Attached hereto

12(a)(3) – Not Applicable

12(b) – 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 Pennsylvania Insured Fund

By: /s/ Donald C. Burke
Donald C. Burke
Chief Executive Officer of
BlackRock MuniYield Pennsylvania Insured Fund

Date: September 19, 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 Pennsylvania Insured Fund

Date: September 19, 2008

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

Date: September 19, 2008