Colonial California Insured Municipal Trust

77L Changes in accounting principals and practices

The Fund has proposed to revoke its ss.171(c) election under the Internal
Revenue Code, thus changing its accounting method for premium amortization.

As required, effective December 1, 2001, the Colonial California
Insured Municipal Trust has adopted the provisions of the AICPA Audit
and Accounting Guide for Investment Companies and began amortizing
and accreting all premiums and discounts on debt securities as
required for adherence to generally accepted accounting principles.
The financial statements and notes to financial statements have been
adjusted accordingly for the Fund, which were materially impacted
by this change.

770 Transactions effected pursuant to Rule 10f-3 cont'd

On January 28,2002, Colonial California Insured Municipal Trust (Fund) purchased
1,000,000 par value of bonds of Puerto Rico Highway and Transportation Authority
(Securities) for a total purchase price of $1,073,410 from Smith Barney pursuant
to a public offering in which Quick & Reilly, Inc. acted as a participating
underwriter. Quick & Reilly, Inc. may be considered to be an affiliate of the
Fund.

       The following information was collected pursuant to Rule 10f-3 procedures
adopted by the Fund's Trustees:

o        The Fund's advisor, Colonial Management Associates (Advisor), believed
         that the gross underwriting spread associated with the purchase of the
         Securities was reasonable and fair compared to the spreads in
         connection with similar underwritings of similar securities being sold
         during a comparable period of time;

o        The Securities were offered pursuant to an underwriting or similar
         agreement under which the underwriters were committed to purchase all
         of the Securities being offered;

o        The issuer of the Securities has been in continuous operation for at
         least three years;

o        The amount of Securities purchased did not exceed 25% of the amount
         of the offering;

o The Securities were to be purchased at not more than the public offering price
no later than the first day of the offering.

Along with Quick & Reilly, Inc., the following is a list of members of
the underwriting syndicate for the afore mentioned Securities: Goldman, Sachs &
Co.; Salomon Smith Barney Inc.; Bear, Stearns & Co., Inc.; Merrill Lynch & Co.;
UBS PaineWebber, Inc.; Morgan Stanley & Co.; Lehman Brothers;
First Union National Bank; ABN Amro Financial Services, Inc.; Banc of America
Securities LLC