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 811-8621
Name of Fund: BlackRock MuniHoldings New Jersey Insured Fund, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer, BlackRock MuniHoldings New Jersey 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: 07/31/2007
Date of reporting period: 08/01/06 - 10/31/06
Item 1 - Schedule of Investments
BlackRock MuniHoldings New Jersey Insured Fund, Inc.
Schedule of Investments as of October 31, 2006 (in Thousands)
Face
Amount Municipal Bonds Value
New Jersey - 144.2% $ 1,875 Atlantic Highlands, New Jersey, Highland Regional Sewer Authority, Sewer
Revenue Refunding Bonds, 5.50% due 1/01/2020 (b) $ 2,020
2,635 Camden County, New Jersey, Improvement Authority, Lease Revenue Bonds, 5.375%
due 9/01/2010 (c)(h) 2,806
1,540 Camden County, New Jersey, Improvement Authority, Lease Revenue Bonds, 5.50%
due 9/01/2010 (c)(h) 1,647
430 Carteret, New Jersey, Board of Education, COP, 6% due 1/15/2010 (d)(h) 466
2,500 Delaware River and Bay Authority Revenue Bonds, New Jersey, 5% due 1/01/2033 (d) 2,616
4,630 Delaware River Joint Toll Bridge Commission of New Jersey and Pennsylvania,
Bridge Revenue Refunding Bonds, 5% due 7/01/2028 4,830
5,000 Delaware River Port Authority of New Jersey and Pennsylvania Revenue Bonds, 5.50%
due 1/01/2012 (c) 5,276
6,000 Delaware River Port Authority of New Jersey and Pennsylvania Revenue Bonds, 5.625%
due 1/01/2013 (c) 6,357
500 Delaware River Port Authority of New Jersey and Pennsylvania Revenue Bonds, 5.75%
due 1/01/2015 (c) 530
4,865 Delaware River Port Authority of New Jersey and Pennsylvania Revenue Bonds, 6%
due 1/01/2018 (c) 5,205
5,525 Delaware River Port Authority of New Jersey and Pennsylvania Revenue Bonds, 6%
due 1/01/2019 (c) 5,911
2,425 Delaware River Port Authority of New Jersey and Pennsylvania Revenue Bonds (Port
District Project), Series B, 5.625% due 1/01/2026 (c) 2,565
7,895 East Orange, New Jersey, Board of Education, COP, 5.50% due 8/01/2012 (c) 8,540
1,000 East Orange, New Jersey, Water Utility, GO, Refunding, 5.70% due 6/15/2008 (a)(h) 1,043
4,000 Essex County, New Jersey, Improvement Authority, Lease Revenue Bonds (Correctional
Facility Project), 6% due 10/01/2010 (b)(h) 4,354
3,300 Essex County, New Jersey, Improvement Authority, Lease Revenue Refunding Bonds
(County Jail and Youth House Project), 5.35% due 12/01/2006 (a)(h) 3,371
4,400 Essex County, New Jersey, Improvement Authority Revenue Bonds, Series A, 5%
due 10/01/2028 (b) 4,628
2,705 Essex County, New Jersey, Improvement Authority, Utility System Revenue Bonds
(East Orange Franchise), 6% due 7/01/2008 (d)(h) 2,837
9,000 Garden State Preservation Trust of New Jersey, Capital Appreciation Revenue Bonds,
Series B, 5.12% due 11/01/2023 (c)(k) 4,388
10,000 Garden State Preservation Trust of New Jersey, Capital Appreciation Revenue Bonds,
Series B, 5.20% due 11/01/2025 (c)(k) 4,448
1,960 Garden State Preservation Trust of New Jersey, Open Space and Farmland Preservation
Revenue Bonds, Series A, 5.80% due 11/01/2021 (c) 2,258
2,730 Garden State Preservation Trust of New Jersey, Open Space and Farmland Preservation
Revenue Bonds, Series A, 5.80% due 11/01/2023 (c) 3,142
Portfolio Abbreviations
To simplify the listings of BlackRock MuniHoldings New Jersey Insured Fund,
Inc.'s portfolio holdings in the Schedule of Investments, we have abbreviated
the names of many of the securities according to the list below.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
DRIVERS Derivative Inverse Tax-Exempt Receipts
EDA Economic Development Authority
GO General Obligation Bonds
RIB Residual Interest Bonds
BlackRock MuniHoldings New Jersey Insured Fund, Inc.
Schedule of Investments as of October 31, 2006 (concluded) (in Thousands)
Face
Amount Municipal Bonds Value
New Jersey $ 9,160 Garden State Preservation Trust of New Jersey, Open Space and Farmland
(concluded) Preservation Revenue Bonds, Series A, 5.75% due 11/01/2028 (c) $ 11,307
5,000 Garden State Preservation Trust of New Jersey, Open Space and Farmland
Preservation, Revenue Refunding Bonds, Series C, 5.25% due 11/01/2020 (c) 5,711
7,705 Garden State Preservation Trust of New Jersey, Open Space and Farmland
Preservation, Revenue Refunding Bonds, Series C, 5.25% due 11/01/2021 (c) 8,831
6,640 Hopatcong, New Jersey, GO, Sewer Refunding Bonds, 4.50% due 8/01/2033 (a) 6,708
2,230 Jersey City, New Jersey, GO, Series B, 5.25% due 9/01/2023 (c) 2,413
5,250 Lafayette Yard, New Jersey, Community Development Revenue Bonds (Hotel/Conference
Center Project-Trenton), 6% due 4/01/2010 (d)(h) 5,707
1,550 Middlesex County, New Jersey, COP, 5.25% due 6/15/2023 (d) 1,613
1,375 Middlesex County, New Jersey, COP, Refunding, 5.50% due 8/01/2016 (d) 1,482
5,270 Middlesex County, New Jersey, Improvement Authority, Lease Revenue Bonds
(Educational Services Commission Projects), 6% due 7/15/2010 (h) 5,759
500 Middlesex County, New Jersey, Improvement Authority Revenue Bonds (Senior Citizens
Housing Project), AMT, 5.50% due 9/01/2030 (a) 524
1,540 Monmouth County, New Jersey, Improvement Authority Revenue Refunding Bonds, 5.35%
due 12/01/2017 (a) 1,637
1,470 Monmouth County, New Jersey, Improvement Authority Revenue Refunding Bonds, 5.375%
due 12/01/2018 (a) 1,563
2,700 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.625% due 6/15/2019 2,846
2,000 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.75% due 6/15/2029 2,176
585 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50% due 6/15/2031 623
1,180 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.75% due 6/15/2034 1,276
5,000 New Jersey EDA, Lease Revenue Bonds (University of Medicine and Dentistry-
International Center for Public Health Project), 6% due 6/01/2032 (a) 5,389
7,500 New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A, 5.25% due
7/01/2026 (d) 8,656
11,105 New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A, 5.25% due
7/01/2033 (d) 11,960
4,485 New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A, 5% due 7/01/2034 (d) 4,725
1,000 New Jersey EDA, Parking Facility Revenue Bonds (Elizabeth Development Company
Project), 5.60% due 10/15/2026 (b) 1,038
3 New Jersey EDA, Revenue Bonds, DRIVERS, Series 219, 8.102% due 5/01/2016 (c)(e) 3
9,000 New Jersey EDA, School Facilities Construction Revenue Bonds, Series L, 5% due
3/01/2030 (c) 9,521
8,420 New Jersey EDA, School Facilities Construction Revenue Bonds, Series O, 5.25%
due 3/01/2023 9,134
2,500 New Jersey EDA, Solid Waste Disposal Facilities Revenue Bonds (Waste Management,
Inc.), AMT, Series A, 5.30% due 6/01/2015 2,636
2,670 New Jersey EDA, State Lease Revenue Bonds (Liberty State Park Project), Series C,
5% due 3/01/2022 (c) 2,852
3,000 New Jersey EDA, State Lease Revenue Bonds (State Office Buildings Projects), 6%
due 6/15/2010 (a)(h) 3,247
4,620 New Jersey EDA, State Lease Revenue Bonds (State Office Buildings Projects), 6.25%
due 6/15/2010 (a)(h) 5,039
10,775 New Jersey Health Care Facilities Financing Authority, Department of Human Services
Revenue Bonds (Greystone Park Psychiatric Hospital Project), 5% due 9/15/2023 (a) 11,514
3,015 New Jersey Health Care Facilities Financing Authority Revenue Bonds (RWJ Healthcare
Corporation), Series B, 5% due 7/01/2035 (i) 3,160
2,820 New Jersey Health Care Facilities Financing Authority Revenue Bonds (Society of
the Valley Hospital), 5.375% due 7/01/2025 (a) 2,976
2,135 New Jersey Health Care Facilities Financing Authority Revenue Bonds (Somerset
Medical Center), 5.50% due 7/01/2033 2,229
5,440 New Jersey Health Care Facilities Financing Authority Revenue Bonds (South Jersey
Hospital), 6% due 7/01/2012 (h) 6,053
4,000 New Jersey Health Care Facilities Financing Authority, Revenue Refunding Bonds
(AHS Hospital Corporation), Series A, 6% due 7/01/2013 (a) 4,506
1,455 New Jersey Health Care Facilities Financing Authority, Revenue Refunding Bonds
(Atlantic City Medical Center), 6.25% due 7/01/2017 1,627
3,500 New Jersey Health Care Facilities Financing Authority, Revenue Refunding Bonds
(Atlantic City Medical Center), 5.75% due 7/01/2025 3,764
1,775 New Jersey Health Care Facilities Financing Authority, Revenue Refunding Bonds
(Holy Name Hospital), 6% due 7/01/2025 1,828
1,000 New Jersey Health Care Facilities Financing Authority, Revenue Refunding Bonds
(Meridian Health System Obligation Group), 5.375% due 7/01/2024 (c) 1,048
5,890 New Jersey Sports and Exposition Authority, Luxury Tax Revenue Refunding Bonds
(Convention Center), 5.50% due 3/01/2021 (d) 6,832
3,000 New Jersey Sports and Exposition Authority, Luxury Tax Revenue Refunding Bonds
(Convention Center), 5.50% due 3/01/2022 (d) 3,497
2,400 New Jersey Sports and Exposition Authority, State Contract Revenue Bonds, Series A,
6% due 3/01/2013 (d) 2,575
7,500 New Jersey State Educational Facilities Authority, Higher Education, Capital
Improvement Revenue Bonds, Series A, 5.125% due 9/01/2012 (a)(h) 8,105
9,420 New Jersey State Educational Facilities Authority Revenue Bonds (Capital
Improvement Fund), Series A, 5.75% due 9/01/2010 (c)(h) 10,156
1,200 New Jersey State Educational Facilities Authority Revenue Bonds (Montclair
State University), Series A, 5% due 7/01/2021 (a) 1,299
2,880 New Jersey State Educational Facilities Authority Revenue Bonds (Montclair
State University), Series A, 5% due 7/01/2022 (a) 3,106
3,210 New Jersey State Educational Facilities Authority Revenue Bonds (Richard
Stockton College), Series F, 4.25% due 7/01/2036 (d) 3,151
3,615 New Jersey State Educational Facilities Authority Revenue Bonds (Rowan
University), Series C, 5.125% due 7/01/2028 (d) 3,861
3260 New Jersey State Educational Facilities Authority Revenue Bonds (Rowan
University), Series C, 5% due 7/01/2034 (d) 3,439
800 New Jersey State Educational Facilities Authority Revenue Bonds (Rowan
University), Series G, 4.50% due 7/01/2031 (d) 802
7,510 New Jersey State Educational Facilities Authority, Revenue Refunding Bonds
(Montclair State University), Series L, 5% due 7/01/2034 (d) 7,923
2,375 New Jersey State Educational Facilities Authority, Revenue Refunding Bonds
(Rowan University), Series C, 5.25% due 7/01/2017 (b) 2,550
2,820 New Jersey State Educational Facilities Authority, Revenue Refunding Bonds
(Rowan University), Series C, 5.25% due 7/01/2018 (b) 3,026
2,635 New Jersey State Educational Facilities Authority, Revenue Refunding Bonds
(Rowan University), Series C, 5.25% due 7/01/2019 (b) 2,827
1,410 New Jersey State Educational Facilities Authority, Revenue Refunding Bonds
(Rowan University), Series C, 5% due 7/01/2031 (b) 1,471
11,225 New Jersey State Housing and Mortgage Finance Agency, Capital Fund Program Revenue
Bonds, Series A, 4.70% due 11/01/2025 (c) 11,518
1,000 New Jersey State Housing and Mortgage Finance Agency, Home Buyer Revenue Bonds, AMT,
Series U, 5.60% due 10/01/2012 (d) 1,025
2,820 New Jersey State Housing and Mortgage Finance Agency, Home Buyer Revenue Bonds, AMT,
Series U, 5.65% due 10/01/2013 (d) 2,892
3,000 New Jersey State Housing and Mortgage Finance Agency, Home Buyer Revenue Bonds, AMT,
Series U, 5.75% due 4/01/2018 (d) 3,077
805 New Jersey State Housing and Mortgage Finance Agency, Home Buyer Revenue Bonds, AMT,
Series U, 5.85% due 4/01/2029 (d) 825
5,000 New Jersey State Transit Corporation, COP (Federal Transit Administration Grants),
Series A, 6.125% due 9/15/2009 (a)(h) 5,341
7,500 New Jersey State Transportation Trust Fund Authority, Transportation System Revenue
Bonds, Series A, 6% due 6/15/2010 (h) 8,117
1,400 New Jersey State Transportation Trust Fund Authority, Transportation System Revenue
Bonds, Series C, 5.05% due 12/15/2035 (a)(k) 394
5,500 New Jersey State Transportation Trust Fund Authority, Transportation System Revenue
Bonds, Series C, 5.05% due 12/15/2036 (a)(k) 1,469
7,800 New Jersey State Transportation Trust Fund Authority, Transportation System Revenue
Bonds, Series D, 5% due 6/15/2019 (c) 8,408
10,750 New Jersey State Transportation Trust Fund Authority, Transportation System Revenue
Refunding Bonds, Series A, 5.25% due 12/15/2020 (c) 12,239
9,165 New Jersey State Transportation Trust Fund Authority, Transportation System Revenue
Refunding Bonds, Series B, 5.50% due 12/15/2021 (d) 10,713
7,615 New Jersey State Turnpike Authority, Turnpike Revenue Bonds, Series B, 5.15% due
1/01/2035 (a)(k) 5,386
910 New Jersey State Turnpike Authority, Turnpike Revenue Refunding Bonds, Series C,
6.50% due 1/01/2016 (d) 1,068
4,355 New Jersey State Turnpike Authority, Turnpike Revenue Refunding Bonds, Series C,
6.50% due 1/01/2016 (d)(g) 5,110
255 New Jersey State Turnpike Authority, Turnpike Revenue Refunding Bonds, Series C,
6.50% due 1/01/2016 (d)(g) 299
4,665 New Jersey State Turnpike Authority, Turnpike Revenue Refunding Bonds, Series C-1,
4.50% due 1/01/2031 (a) 4,674
1,000 North Bergen Township, New Jersey, Board of Education, COP, 6% due 12/15/2010 (c)(h) 1,101
1,580 North Bergen Township, New Jersey, Board of Education, COP, 6.25% due
12/15/2010 (c)(h) 1,755
1,680 North Bergen Township, New Jersey, Board of Education, COP, 6.25% due
12/15/2010 (c)(h) 1,866
1,250 North Bergen Township, New Jersey, Board of Education, COP, 5% due 12/15/2018 (c) 1,299
4,335 North Hudson Sewage Authority, New Jersey, Sewer Revenue Refunding Bonds, 5.125%
due 8/01/2020 (d) 4,881
1,035 Orange Township, New Jersey, Municipal Utility and Lease, GO, Refunding, Series C,
5.10% due 12/01/2017 (d) 1,074
1,980 Paterson, New Jersey, Public School District, COP, 6.125% due 11/01/2015 (d) 2,132
2,000 Paterson, New Jersey, Public School District, COP, 6.25% due 11/01/2019 (d) 2,166
4,750 Port Authority of New Jersey and New York, Consolidated Revenue Refunding Bonds,
AMT, 119th Series, 5.50% due 9/15/2019 (b) 4,804
650 Port Authority of New Jersey and New York, Special Obligation Revenue Bonds (JFK
International Air Terminal LLC), RIB, AMT, Series 157, 7.60% due 12/01/2022 (d)(e) 703
13,500 Port Authority of New Jersey and New York, Special Obligation Revenue Bonds (JFK
International Air Terminal LLC), AMT, Series 6, 6.25% due 12/01/2011 (d) 14,997
1,500 Port Authority of New Jersey and New York, Special Obligation Revenue Bonds (JFK
International Air Terminal LLC), AMT, Series 6, 6.25% due 12/01/2015 (d) 1,750
3,000 Port Authority of New Jersey and New York, Special Obligation Revenue Bonds (JFK
International Air Terminal LLC), AMT, Series 6, 5.75% due 12/01/2025 (d) 3,065
9,600 Rahway Valley Sewerage Authority, New Jersey, Sewer Revenue Bonds (Capital
Appreciation), Series A, 4.79% due 9/01/2028 (d)(k) 3,722
3,750 South Jersey Port Corporation of New Jersey, Revenue Refunding Bonds, 4.50%
due 1/01/2015 3,882
1,920 South Jersey Port Corporation of New Jersey, Revenue Refunding Bonds, 4.50%
due 1/01/2016 1,978
1,500 South Jersey Port Corporation of New Jersey, Revenue Refunding Bonds, 5% due 1/01/2026 1,560
2,000 South Jersey Port Corporation of New Jersey, Revenue Refunding Bonds, 5.10% due
1/01/2033 2,086
4,755 Tobacco Settlement Financing Corporation of New Jersey, Asset-Backed Revenue Bonds,
7% due 6/01/2041 5,502
2,000 University of Medicine and Dentistry of New Jersey, COP, 5% due 6/15/2029 (d) 2,111
4,740 University of Medicine and Dentistry of New Jersey, Revenue Bonds, Series A, 5.50%
due 12/01/2027 (a) 5,161
4,170 West Deptford Township, New Jersey, GO, 5.625% due 9/01/2010 (b)(h) 4,477
4,410 West Deptford Township, New Jersey, GO, 5.625% due 9/01/2010 (b)(h) 4,735
3,615 West Orange, New Jersey, Board of Education, COP, 6% due 10/01/2009 (d)(h) 3,891
Puerto Rico - 7.6% 4,500 Puerto Rico Commonwealth Highway and Transportation Authority, Transportation
Revenue Refunding Bonds, Series J, 5% due 7/01/2029 (d) 4,773
3,480 Puerto Rico Commonwealth Highway and Transportation Authority, Transportation
Revenue Refunding Bonds, Series K, 5% due 7/01/2040 3,629
6,830 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series HH, 5.25% due
7/01/2029 (c) 7,237
5,100 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series RR, 5% due
7/01/2028 (f) 5,424
1,780 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control
Facilities Revenue Bonds (Hospital Auxilio Mutuo Obligation Group), Series A,
6.25% due 7/01/2024 (d) 1,794
1,750 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control
Facilities Revenue Bonds (Hospital de la Concepcion), Series A, 6.50% due 11/15/2020 1,940
Total Municipal Bonds (Cost - $467,134) - 151.8% 494,989
Municipal Bonds Held in Trust (m)
New Jersey - 14.8% 25,230 New Jersey EDA, Natural Gas Facilities Revenue Refunding Bonds (NUI Corporation
Projects), AMT, Series A, 5.70% due 6/01/2032 (d) 25,959
9,155 New Jersey EDA, Revenue Bonds (Transportation Project), Sub-Lease, Series A, 6%
due 5/01/2009 (c)(h) 9,687
3,030 Port Authority of New York and New Jersey, Special Obligation Revenue Bonds (JFK
International Air Terminal), AMT, Series 6, 5.75% due 12/01/2022 (d) 3,154
8,650 Trenton, New Jersey, Parking Authority, Parking Revenue Bonds, 6.10% due
4/01/2010 (b)(h) 9,353
Total Municipal Bonds Held in Trust (Cost - $46,716) - 14.8% 48,153
Shares
Held Short-Term Securities
1,865 CMA New Jersey Municipal Money Fund, 3.38% (j)(l) 1,865
Total Short-Term Securities (Cost - $1,865) - 0.6% 1,865
Total Investments (Cost - $515,715*) - 167.2% 545,007
Other Assets Less Liabilities - 2.2% 7,368
Liabilities for Trust Certificates, Including Interest Expense Payable - (7.1%) (23,260)
Preferred Stock, at Redemption Value - (62.3%) (203,103)
-----------
Net Assets Applicable to Common Stock - 100.0% $ 326,012
===========
* The cost and unrealized appreciation (depreciation) of investments,
as of October 31, 2006, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 495,570
==============
Gross unrealized appreciation $ 26,554
Gross unrealized depreciation (149)
--------------
Net unrealized appreciation $ 26,405
==============
(a) AMBAC Insured.
(b) FGIC Insured.
(c) FSA Insured.
(d) MBIA Insured.
(e) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(f) CIFG Insured.
(g) Escrowed to maturity.
(h) Prerefunded.
(i) Radian Insured.
(j) Investments in companies considered to be an affiliate of the Fund,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940,
were as follows:
Net Dividend
Affiliate Activity Income
CMA New Jersey
Municipal Money Fund 815 $21
(k) Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase.
(l) Represents the current yield as of October 31, 2006.
(m) Securities represent underlying bonds transferred to a separate
securitization trust established in a tender option bond transaction
in which the Fund may have acquired the residual interest certificates.
These securities serve as collateral in a financing transaction.
Item 2 - Controls and Procedures
2(a) - The Registrant's principal executive and principal financial officers
have evaluated the Registrant's disclosure controls and procedures,
including internal control over financial reporting, within 90 days of
this filing. Such principal officers have concluded that as of
January 23, 2007 the Registrant's disclosure controls and procedures
were effective in design and operation to reasonably ensure that
information required to be disclosed by the Registrant in this Form
N-Q was recorded, processed, summarized, and reported within the
required time periods, and were sufficient to form the basis of the
certifications required by Rule 30a-2 of the Investment Company Act of
1940, as amended. Prior to reaching that conclusion, such principal
officers had become aware of matters relating to the Registrant's
participation in certain inverse floater structures that necessitated
adjustments to financial information included in the Registrant's
annual report to shareholders on Form N-CSR. As a result, management
of the Registrant had reevaluated certain disclosure controls and
procedures determined not to be effective, as discussed more fully
below.
Management of the Registrant is responsible for establishing and
maintaining effective internal control over financial reporting. In
fulfilling this responsibility, estimates and judgments by management
are required to assess the expected benefits and related costs of
controls. The Registrant's internal control over financial reporting
is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with U.S. generally
accepted accounting principles. Such internal control includes
policies and procedures that provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use or
disposition of a registrant's assets that could have a material effect
on the financial statements.
Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements. Also, projections
of any evaluation of effectiveness to future periods are subject to
the risk that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
A control deficiency exists when the design or operation of a control
does not allow management or employees, in the normal course of
performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a
control deficiency, or combination of control deficiencies, that
adversely affects the Registrant's ability to initiate, authorize,
record, process or report financial data reliably in accordance with
generally accepted accounting principles such that there is more than
a remote likelihood that a misstatement of the Registrant's annual or
interim financial statements that is more than inconsequential will
not be prevented or detected. A material weakness is a significant
deficiency, or combination of significant deficiencies, that results
in more than a remote likelihood that a material misstatement of the
annual or interim financial statements will not be prevented or
detected.
The Registrant identified the following control deficiency, that was
determined to be a material weakness, as defined above, in the
Registrant's internal control over financial reporting at October 31,
2006. The Registrant's controls related to the review and analysis
of relevant terms and conditions of transfers of certain assets
pertaining to inverse floater structures were not operating
effectively to appropriately determine whether the transfers of assets
qualified for sale accounting under the provisions of Statement of
Financial Accounting Standards No. 140, "Accounting for Transfers and
Servicing of Financial Assets and Extinguishments of Liabilities"
("SFAS 140"). As a result, these controls did not detect that certain
transfers were not appropriately recorded as borrowings. Accordingly,
the Registrant's schedule of investments as of and for the period
ended October 31, 2006, were restated to appropriately reflect
transfers of such securities as secured borrowings. These adjustments
had no impact on net assets, net asset value per share or total
return.
Subsequent to October 31, 2006, but prior to the evaluation of the
design and operation of the Registrant's disclosure controls and
procedures at January 23, 2007, the Registrant's disclosure controls
and procedures were modified to enhance the review and analysis of the
relevant terms and conditions of transfers of securities in connection
with inverse floater structures in light of SFAS 140.
2(b) - There have been 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 are
reasonably likely to materially affect, the registrant's internal
control over financial reporting. However, as discussed above,
subsequent to October 31, 2006, the Registrant has enhanced controls
related to the application of SFAS 140.
Item 3 - Exhibits
Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock MuniHoldings New Jersey Insured Fund, Inc.
By: /s/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.
Chief Executive Officer
BlackRock MuniHoldings New Jersey Insured Fund, Inc.
Date: February 20, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on
the dates indicated.
By: /s/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.
Chief Executive Officer
BlackRock MuniHoldings New Jersey Insured Fund, Inc.
Date: February 20, 2007
By: /s/ Donald C. Burke
-------------------
Donald C. Burke
Chief Financial Officer
BlackRock MuniHoldings New Jersey Insured Fund, Inc.
Date: February 20, 2007