NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
MuniYield California Insured Fund II, Inc. (the "Fund") is registered under the Investment Company Act of 1940
as a non-diversified, closed- end management investment company. The Fund determines and makes available
for publication the net asset value of its Common Stock on a weekly basis. The Fund's Common Stock is listed
on the New York Stock Exchange under the symbol MCA. The following is a summary of significant accounting
policies followed by the Fund.
(a) Valuation of investments -- Municipal bonds are traded primarily in the over-the-counter markets and are
valued at the most recent bid price or yield equivalent as obtained by the Fund's pricing service from dealers that
make markets in such securities. Financial futures contracts and options thereon, which are traded on exchanges,
are valued at their closing prices as of the close of such exchanges. Options, which are traded on exchanges, are
valued at their last sale price as of the close of such exchanges or, lacking any sales, at the last available bid price.
Securities with remaining maturities of sixty days or less are valued at amortized cost, which approximates market
value. Securities and assets for which market quotations are not readily available are valued at fair value as
determined in good faith by or under the direction of the Board of Directors of the Fund, including valuations
furnished by a pricing service retained by the Fund, which may utilize a matrix system for valuations. The
procedures of the pricing service and its valuations are reviewed by the officers of the Fund under the general
supervision of the Board of Directors.
(b) Derivative financial instruments -- The Fund may engage in various portfolio strategies to seek to increase its
return by hedging its portfolio against adverse movements in the debt markets. Losses may arise due to changes
in the value of the contract or if the counterparty does not perform under the contract.