EX-99.77Q2 ITEM 405

For period ending March 31, 2004

File number 811-7528
Exhibit 77Q-2

Section 16(a) Beneficial Ownership Reporting Compliance

         An initial report under Section 16(a) of the Securities Exchange
 Act of 1934 was not timely filed for Mr. Joseph A. Varnas, president of
the registrant.  This delayed report did not involve any transactions in
the registrants common stock but rather related to his election as an officer.

EX-99

Report of Independent Auditors


To the Shareholders and Board of Directors of
Insured Municipal Income Fund Inc.

In planning and performing our audit of the financial statements
of Insured Municipal Income Fund Inc. for the year ended March 31,
2004, we considered its internal control, including control
activities for safeguarding securities, in order to determine our
auditing procedures for the purpose of expressing our opinion on
the financial statements and to comply with the requirements of
Form NSAR, not to provide assurance on the internal control.

The management of Insured Municipal Income Fund Inc. is responsible
for establishing and maintaining internal control.  In fulfilling
this responsibility, estimates and judgments by management are
required to assess the expected benefits and related costs of
controls.  Generally, controls that are relevant to an audit pertain
to the entitys objective of preparing financial statements for
external purposes that are fairly presented in conformity with
accounting principles generally accepted in the United States.
Those controls include the safeguarding of assets against
unauthorized acquisition, use or disposition.

Because of inherent limitations in internal control, error or fraud
may occur and not be detected.  Also, projections of any evaluation
of internal control to future periods is subject to the risk that it
may become inadequate because of changes in conditions or that the
effectiveness of the design and operation may deteriorate.

Our consideration of internal control would not necessarily disclose
all matters in internal control that might be material weaknesses
under standards established by the American Institute of Certified
Public Accountants.  A material weakness is a condition in which the
design or operation of one or more of the internal control components
does not reduce to a relatively low level the risk that misstatements
caused by error or fraud in amounts that would be material in relation
to the financial statements being audited may occur and not be detected
within a timely period by employees in the normal course of performing
their assigned functions.  However, we noted no matters involving
internal control and its operation, including controls for safeguarding
securities that we consider to be material weaknesses as defined above
as of March 31, 2004.

This report is intended solely for the information and use of management,
the Shareholders and the Board of Directors of Insured Municipal Income
Fund Inc. and the Securities and Exchange Commission and is not intended
to be and should not be used by anyone other than these specified parties.



			ERNST & YOUNG LLP

April 30, 2004

EX-99.77I NEW SECUR

For period ending March 31, 2004

File number 811-7528
Exhibit 77I


As of December 17, 2003, Insured Municipal Income Fund Inc. began
offering 600 Series E and 600 Series F of Auction Preferred Shares
(APS Shares).

Further information regarding the new APS shares is incorporated
herein by reference to the registrants registration statement on
Form N-2/A filed with the SEC on December 15, 2003 (Accession
Number  0001047469-03-040604, SEC File No. 333-109487).

EX-99.77Q1 OTHR EXHB

For period ending March 31, 2004

File number 811-7528
Exhibit 77Q(1)


A copy of the Funds Articles Supplementary to the Articles of
Incorporation relating to the new APS shares is incorporated herein
by reference to the registrants registration statement on Form N-2/A
filed with the SEC on December 15, 2003 (Accession Number
0001047469-03-040604, SEC File No. 333-109487).