UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company Act file number 811-7080 Name of Fund: MuniYield Michigan Insured Fund, Inc. Fund Address: P.O. Box 9011 Princeton, NJ 08543-9011 Name and address of agent for service: Robert C. Doll, Jr., President, MuniYield Michigan Insured Fund, Inc., 800 Scudders Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011 Registrant's telephone number, including area code: (609) 282-2800 Date of fiscal year end: 10/31/05 Date of reporting period: 11/01/04 - 01/31/05 Item 1 - Schedule of Investments MuniYield Michigan Insured Fund, Inc. Schedule of Investments as of January 31, 2005 (in Thousands) Face Amount Municipal Bonds Value Michigan - 150.2% Adrian, Michigan, City School District, GO (d): $ 2,000 5% due 5/01/2029 $ 2,101 1,600 5% due 5/01/2034 1,672 1,000 Allegan, Michigan, Public School District, GO, 5.75% due 5/01/2030 (d) 1,112 1,000 Ann Arbor, Michigan, Public School District, School Building and Site, GO, 5% due 5/01/2027 1,053 Belding, Michigan, Area Schools, GO, Refunding (c): 785 6.05% due 5/01/2006 (e) 829 215 6.05% due 5/01/2021 227 1,000 Birmingham, Michigan, City School District, School Building and Site, GO, 5% due 11/01/2033 (d) 1,047 3,525 Central Michigan University, General Revenue Bonds, 5% due 10/01/2034 (a) 3,703 1,000 Central Montcalm, Michigan, Public Schools, GO, 5.90% due 5/01/2019 (b) 1,118 1,000 Comstock Park, Michigan, Public Schools, GO, 5.75% due 5/01/2029 (c) 1,100 Delta County, Michigan, Economic Development Corporation, Environmental Improvement Revenue Refunding Bonds (Mead Westvaco-Escanaba): 1,500 AMT, Series B, 6.45% due 4/15/2023 1,685 2,000 Series A, 6.25% due 4/15/2027 2,282 1,000 Detroit, Michigan, City School District, GO, Series A, 5.50% due 5/01/2018 (d) 1,124 2,300 Detroit, Michigan, City School District, School Building and Site Improvement, GO, Series A, 5.375% due 5/01/2024 (c) 2,573 Detroit, Michigan, GO (b): 1,400 5.50% due 4/01/2018 1,566 1,325 5.50% due 4/01/2020 1,482 2,705 Series B, 6% due 4/01/2010 (e) 3,117 Detroit, Michigan, Sewer Disposal Revenue Refunding Bonds, Senior Lien (d): 1,000 Series A, 5% due 7/01/2032 1,040 1,545 Series C, 5.25% due 7/01/2022 1,773 Detroit, Michigan, Water Supply System Revenue Bonds: 4,375 DRIVERS, Series 200, 9.35% due 7/01/2011 (c)(e)(g) 5,759 1,250 Senior Lien, Series A, 5.875% due 1/01/2010 (c)(e) 1,428 6,900 Senior Lien, Series A, 5% due 7/01/2034 (b) 7,174 14,790 Series B, 5.25% due 7/01/2032 (b) 15,838 3,970 Series B, 5% due 7/01/2034 (b) 4,130 1,415 Detroit, Michigan, Water Supply System Revenue Refunding Bonds, 6.25% due 7/01/2012 (c)(h) 1,606 Portfolio Abbreviations To simplify the listings of MuniYield Michigan Insured Fund, Inc.'s portfolio holdings in the Schedule of Investments, we have abbreviated the names of many of the securities according to the list below. AMT Alternative Minimum Tax (subject to) COP Certificates of Participation DRIVERS Derivative Inverse Tax-Exempt Receipts HDA Housing Development Authority GAN Grant Anticipation Notes GO General Obligation Bonds PCR Pollution Control Revenue Bonds RIB Residual Interest Bonds MuniYield Michigan Insured Fund, Inc. Schedule of Investments as of January 31, 2005 (concluded) (in Thousands) Face Amount Municipal Bonds Value Michigan (concluded) $3,900 Dickinson County, Michigan, Economic Development Corporation, Environmental Improvement Revenue Refunding Bonds (International Paper Company Project), Series A, 5.75% due 6/01/2016 $ 4,228 3,100 Dickinson County, Michigan, Healthcare System, Hospital Revenue Refunding Bonds, 5.80% due 11/01/2024 (i) 3,285 1,610 East Grand Rapids, Michigan, Public School District, GO, 5.75% due 5/01/2009 (d)(e) 1,796 Eastern Michigan University, Revenue Bonds, Series B (c): 1,500 5.60% due 6/01/2025 1,651 1,310 5.625% due 6/01/2030 1,444 1,025 Eastern Michigan University, Revenue Refunding Bonds, 6% due 6/01/2020 (a) 1,173 Eaton Rapids, Michigan, Public Schools, School Building and Site, GO (d): 1,325 5.25% due 5/01/2020 1,476 1,675 5.25% due 5/01/2021 1,860 1,700 5% due 5/01/2026 1,803 3,600 5% due 5/01/2029 3,782 615 Flint, Michigan, Hospital Building Authority, Revenue Refunding Bonds (Hurley Medical Center), Series A, 5.375% due 7/01/2020 (i) 638 2,200 Fowlerville, Michigan, Community Schools, School District, GO, 5% due 5/01/2030 (c) 2,306 1,000 Frankenmuth, Michigan, School District, GO, 5.75% due 5/01/2010 (c)(e) 1,117 3,650 Gibraltar, Michigan, School District School Building and Site, GO, 5% due 5/01/2028 (c) 3,840 1,100 Grand Blanc, Michigan, Community Schools, GO, 5.625% due 5/01/2020 (c) 1,253 Grand Rapids, Michigan, Building Authority Revenue Bonds, Series A (a): 1,100 5.50% due 10/01/2019 1,244 1,500 5.50% due 10/01/2020 1,696 2,070 Grand Valley, Michigan, State University Revenue Bonds, 5.50% due 2/01/2018 (c) 2,381 8,425 Greater Detroit, Michigan, Resource Recovery Authority Revenue Bonds, DRIVERS, Series 167, 10.344% due 12/13/2008 (a)(g) 10,497 Gull Lake, Michigan, Community School District, School Building and Site, GO (d): 2,000 5% due 5/01/2028 2,104 3,625 5% due 5/01/2030 3,800 4,775 Harper Woods, Michigan, City School District, School Building and Site, GO, Refunding, 5% due 5/01/2034 (c) 4,990 9,325 Hartland, Michigan, Consolidated School District, GO, 6% due 5/01/2010 (c)(e) 10,676 3,990 Hudsonville, Michigan, Public Schools, School Building and Site, GO, 5% due 5/01/2029 (d) 4,192 1,575 Jenison, Michigan, Public Schools, Building and Site, GO, 5.50% due 5/01/2019 (c) 1,771 3,305 Jonesville, Michigan, Community Schools, GO, 5.75% due 5/01/2029 (c) 3,634 6,850 Kalamazoo, Michigan, Hospital Finance Authority, Hospital Facility Revenue Refunding Bonds (Bronson Methodist Hospital), 5.50% due 5/15/2028 (b) 7,320 4,000 Kent, Michigan, Hospital Finance Authority, Hospital Revenue Refunding Bonds (Butterworth Hospital), Series A, 7.25% due 1/15/2013 (b) 4,768 Kent, Michigan, Hospital Finance Authority Revenue Bonds (Spectrum Health), Series A: 1,000 5.50% due 1/15/2031 1,059 3,000 5.50% due 1/15/2031 (b) 3,222 1,510 Lansing, Michigan, Building Authority, GO, Series A, 5.375% due 6/01/2023 (b) 1,690 5,235 Lincoln Park, Michigan, School District, GO, 7% due 5/01/2006 (c)(e) 5,586 4,775 Livonia, Michigan, Public School District, GO (Building and Site), 5.75% due 5/01/2010 (c)(e) 5,409 2,425 Mayville, Michigan, Community Schools, School Building and Site, GO, 5% due 5/01/2034 (c) 2,539 2,500 Mendon, Michigan, Community Schools, School Building and Site, GO, 5% due 5/01/2034 (c) 2,613 2,250 Michigan Higher Education Facilities Authority, Limited Obligation Revenue Refunding Bonds (Hope College), Series A, 5.90% due 4/01/2032 2,382 Michigan Higher Education Facilities Authority, Revenue Refunding Bonds (College for Creative Studies): 1,235 5.85% due 12/01/2022 1,277 1,145 5.90% due 12/01/2027 1,176 2,500 Michigan Higher Education Student Loan Authority, Student Loan Revenue Bonds, AMT, Series XVII-B, 5.40% due 6/01/2018 (a) 2,609 1,065 Michigan Municipal Bond Authority Revenue Bonds (Local Government Loan Program), Group A, 5.50% due 11/01/2020 (a) 1,183 Michigan Municipal Bond Authority, Revenue Refunding Bonds (Local Government Loan Program), Series A: 150 6.50% due 11/01/2012 (b) 150 1,000 6% due 12/01/2013 (c) 1,023 7,000 6.125% due 12/01/2018 (c) 7,159 Michigan State Building Authority, Revenue Refunding Bonds (Facilities Program): 2,500 (Facilities Program), Series I, 5.50% due 10/15/2018 (b) 2,820 3,000 (Facilities Program), Series II, 5% due 10/15/2029 (b) 3,144 11,140 RIB, Series 517X, 8.89% due 10/15/2010 (d)(g) 14,110 Michigan State, COP (a): 3,000 5.40%** due 6/01/2022 1,353 3,000 5.50% due 6/01/2027 3,277 1,605 Michigan State, HDA, Rental Housing Revenue Bonds, AMT, Series A, 5.30% due 10/01/2037 (b) 1,639 2,690 Michigan State, HDA, Revenue Refunding Bonds, Series C, 5.90% due 12/01/2015 (f) 2,821 2,530 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (Mid-Michigan Obligation Group), Series A, 5.50% due 4/15/2018 (a) 2,787 Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds: 2,200 (Crittenton Hospital), Series A, 5.625% due 3/01/2027 2,340 2,000 (Sparrow Obligation Group), 5.625% due 11/15/2031 2,105 Michigan State Hospital Finance Authority, Revenue Refunding Bonds: 2,715 (Ascension Health Credit), Series A, 5.75% due 11/15/2009 (b)(e) 3,075 12,000 (Ascension Health Credit), Series A, 6.125% due 11/15/2009 (b)(e) 13,791 2,500 (Ascension Health Credit), Series A, 6.25% due 11/15/2009 (b)(e) 2,887 4,805 (Mercy Health Services), Series T, 6.50% due 8/15/2013 (b) 5,279 2,000 (Mercy Health Services), Series X, 6% due 8/15/2014 (b) 2,249 2,200 (Mercy Health Services), Series X, 5.75% due 8/15/2019 (b) 2,457 4,930 (Mercy Mount Clemens), Series A, 6% due 5/15/2014 (b) 5,522 3,000 (Saint John Hospital), Series A, 6% due 5/15/2013 (a)(e)(h) 3,137 6,400 (Trinity Health), Series A, 6% due 12/01/2027 (a) 7,311 1,000 (Trinity Health Credit), Series C, 5.375% due 12/01/2023 1,067 5,255 (Trinity Health Credit), Series C, 5.375% due 12/01/2030 5,502 2,800 Michigan State Revenue Bonds, GAN, Series B, 1.83% due 9/15/2008 (d) 2,800 5,000 Michigan State Strategic Fund, Limited Obligation Revenue Bonds (Ford Motor Company Project), AMT, Series A, 6.55% due 10/01/2022 5,110 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds: 7,250 (Detroit Edison Company), AMT, Series A, 5.55% due 9/01/2029 (b) 7,690 6,000 (Detroit Edison Company Fund - Pollution), Series AA, 6.95% due 5/01/2011 (c) 7,229 3,300 (Detroit Edison Pollution Control), Series C, 5.45% due 9/01/2029 3,455 2,175 (Dow Chemical Company Project), AMT, 5.50% due 12/01/2028 2,382 5,750 RIB, Series 382, 10.64% due 9/01/2025 (b)(g) 6,238 4,300 Michigan State Strategic Fund, PCR, Refunding (General Motors Corp.), 6.20% due 9/01/2020 4,463 1,000 Michigan State Trunk Line, Revenue Refunding Bonds, 5.25% due 10/01/2021 (d) 1,105 15,000 Monroe County, Michigan, Economic Development Corp., Limited Obligation Revenue Refunding Bonds (Detroit Edison Co. Project), Series AA, 6.95% due 9/01/2022 (c) 20,123 1,000 Montrose Township, Michigan, School District, GO, 6.20% due 5/01/2017 (b) 1,224 1,830 Muskegon Heights, Michigan, Water System Revenue Bonds, Series A, 5.625% due 11/01/2025 (b) 2,031 235 Northview, Michigan, Public School District, GO, Refunding, 5.80% due 5/01/2021 (b) 247 1,100 Norway Vulcan, Michigan, Area Schools, GO, 5.90% due 5/01/2025 (c) 1,220 5,320 Orchard View, Michigan, Schools, School Building and Site, GO, 5% due 5/01/2029 (b) 5,557 4,835 Ostego, Michigan, Public Schools District, School Building and Site, GO, 5% due 5/01/2034 (d) 5,053 2,425 Oxford, Michigan, Area Community School District, GO, 5.50% due 5/01/2018 (d) 2,741 1,370 Pennfield, Michigan, School District, School Building and Site, GO, 5% due 5/01/2029 (c) 1,439 1,000 Plainwell, Michigan, Community Schools, School District, School Building and Site, GO, 5.50% due 5/01/2020 (d) 1,132 3,905 Plymouth-Canton, Michigan, Community School District, GO, 5% due 5/01/2029 (c) 4,102 700 Pontiac, Michigan, Tax Increment Finance Authority, Tax Increment Revenue Refunding Bonds (Development Area 2), 5.625% due 6/01/2022 (i) 746 1,425 Reed, Michigan, City Public Schools, School Building and Site, GO, 5% due 5/01/2026 (d) 1,512 1,800 Rochester, Michigan, Community School District, GO, Series II, 5.50% due 5/01/2015 (c) 2,033 2,500 Saginaw, Michigan, Hospital Finance Authority, Revenue Refunding Bonds (Covenant Medical Center), Series E, 5.625% due 7/01/2013 (b) 2,766 Saginaw Valley State University, Michigan, General Revenue Refunding Bonds (c): 2,100 5% due 7/01/2024 2,250 1,445 5% due 7/01/2034 1,511 8,900 Saint Clair County, Michigan, Economic Revenue Refunding Bonds (Detroit Edison Company), RIB, Series 282, 10.64% due 8/01/2024 (a)(g) 11,370 1,300 Southfield, Michigan, Library Building Authority, GO, 5.50% due 5/01/2018 (b) 1,442 Southfield, Michigan, Public Schools, School Building and Site, GO, Series A (d): 2,900 5.25% due 5/01/2027 3,152 3,500 5% due 5/01/2029 3,677 1,325 Sparta, Michigan, Area Schools, School Building and Site, GO, 5% due 5/01/2030 (c) 1,389 Sturgis, Michigan, Public School District, School Building and Site, GO: 1,900 5.50% due 5/01/2021 2,092 2,545 5.625% due 5/01/2030 2,797 1,000 Three Rivers, Michigan, Community Schools GO, 6% due 5/01/2006 (b)(e) 1,055 1,100 Waverly, Michigan, Community School, GO, 5.50% due 5/01/2010 (c)(e) 1,213 10,660 Wayne Charter County, Michigan, Airport Revenue Bonds (Detroit Metropolitan Wayne County), AMT, Series A, 5.375% due 12/01/2015 (b) 11,408 1,750 Wayne Charter County, Michigan, Detroit Metropolitan Airport, GO, Airport Hotel, Series A, 5% due 12/01/2030 (b) 1,816 West Bloomfield, Michigan, School District, GO Refunding (c): 1,710 5.50% due 5/01/2017 1,923 1,225 5.50% due 5/01/2018 1,377 2,405 West Branch-Rose City, Michigan, Area School District, GO, 5.50% due 5/01/2024 (c) 2,629 6,075 Western Michigan University Revenue Bonds, 5% due 11/15/2035 (c) 6,343 1,600 Zeeland, Michigan, Public Schools, School Building and Site, GO, 5% due 5/01/2029 (b) 1,681 Puerto Rico - 3.5% 1,270 Puerto Rico Electric Power Authority, Power Revenue Bonds, Trust Receipts, Class R, Series 16 HH, 9.333% due 7/01/2013 (d)(g) 1,625 3,790 Puerto Rico Municipal Finance Agency Revenue Bonds, Series A, 5% due 8/01/2027 (d) 4,003 Puerto Rico Public Finance Corporation, Commonwealth Appropriation Revenue Bonds (e): 1,000 Series A, 5.375% due 8/01/2011 (b) 1,129 1,000 Series E, 5.70% due 2/01/2010 1,124 2,150 University of Puerto Rico, University Revenue Refunding Bonds, Series O, 5.375% due 6/01/2030 (b) 2,189 Total Investments (Cost - $409,713*) - 153.7% 446,607 Other Assets Less Liabilities - 3.1% 9,064 Preferred Stock, at Redemption Value - (56.8%) (165,033) ---------- Net Assets Applicable to Common Stock - 100.0% $ 290,638 ========== *The cost and unrealized appreciation (depreciation) of investments as of January 31, 2005, as computed for federal income tax purposes, were as follows: (in Thousands) Aggregate cost $ 409,713 ========= Gross unrealized appreciation $ 37,015 Gross unrealized depreciation (121) --------- Net unrealized appreciation $ 36,894 ========= **Represents a zero coupon bond; the interest rate shown reflects the effective yield at the time of purchase of the Fund. (a)AMBAC Insured. (b)MBIA Insured. (c)FGIC Insured. (d)FSA Insured. (e)Prerefunded. (f)FHA Insured. (g)The rate disclosed is that currently in effect. This rate changes periodically and inversely based upon prevailing market rates. (h)Escrowed to maturity. (i)ACA Insured. Investments in companies considered to be an affiliate of the Fund (such companies are defined as "Affiliated Companies" in Section 2(a)(3) of the Investment Company Act of 1940) were as follows: (in Thousands) Net Dividend Affiliate Activity Income CMA Michigan Municipal Money Fund (7,190) $ 8 Forward interest rate swaps outstanding as of January 31, 2005 were as follows: (in Thousands) Notional Unrealized Amount Depreciation Receive a variable rate equal to 7-Day Bond Market Association Municipal Swap Index Rate and pay a fixed rate of 3.619% Broker, JPMorgan Chase Bank Expires February 2015 $ 10,100 $ (106) Receive a variable rate equal to 7-Day Bond Market Association Municipal Swap Index Rate and pay a fixed rate of 3.565% Broker, JPMorgan Chase Bank Expires April 2015 $ 21,500 (53) ------- Total $ (159) ======= Item 2 - Controls and Procedures 2(a) - The registrant's certifying officers have reasonably designed such disclosure controls and procedures to ensure material information relating to the registrant is made known to us by others particularly during the period in which this report is being prepared. The registrant's certifying officers have determined that the registrant's disclosure controls and procedures are effective based on our evaluation of these controls and procedures as of a date within 90 days prior to the filing date of this report. 2(b) - There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the last fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 3 - Exhibits Certifications - Attached hereto Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. MuniYield Michigan Insured Fund, Inc. By: /s/ Robert C. Doll, Jr. Robert C. Doll, Jr., President MuniYield Michigan Insured Fund, Inc. Date: March 21, 2005 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Robert C. Doll, Jr. Robert C. Doll, Jr., President MuniYield Michigan Insured Fund, Inc. Date: March 21, 2005 By: /s/ Donald C. Burke Donald C. Burke, Chief Financial Officer MuniYield Michigan Insured Fund, Inc. Date: March 21, 2005