NOTES TO FINANCIAL STATEMENTS (unaudited)
1. ORGANIZATION AND ACCOUNTING POLICIES -- InterCapital Insured Municipal Bond Trust (the
"Trust") is registered under the Investment Company Act of 1940, as amended, as a diversified, closed-end
management investment company. The Trust was organized as a Massachusetts business trust on February 27,
1990 and commenced operations on February 28, 1991.
The following is a summary of significant accounting policies:
A. Valuation of Investments -- Portfolio securities are valued for the Trust by an outside independent pricing
service approved by the Trustees. The pricing service has informed the Trust that in valuing the Trust's portfolio
securities, it uses both a computerized matrix of tax-exempt securities and evaluations by its staff, in each case
based on information concerning market transactions and quotations from dealers which reflect the bid side of the
market each day. The Trust's portfolio securities are thus valued by reference to a combination of transactions
and quotations for the same or other securities believed to be comparable in quality, coupon, maturity, type of
issue, call provisions, trading characteristics and other features deemed to be relevant. Short-term debt securities
having a maturity date of more than sixty days at time of purchase are valued on a mark-to-market basis until
sixty days prior to maturity and thereafter at amortized cost based on their value on the 61st day. Short-term debt
securities having a maturity date of sixty days or less at the time of purchase are valued at amortized cost.
B. Accounting for Investments -- Security transactions are accounted for on the trade date (date the order to buy
or sell is executed). Realized gains and losses on security transactions are determined by the identified cost
method. The Trust amortizes premiums and accretes discounts on securities purchased over the life of the
respective securities. Interest income is accrued daily.
C. Federal Income Tax Status -- It is the Trus