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<SEC-DOCUMENT>/in/edgar/work/20000707/0000950136-00-000927/0000950136-00-000927.txt : 20000920
<SEC-HEADER>0000950136-00-000927.hdr.sgml : 20000920
ACCESSION NUMBER:		0000950136-00-000927
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20000823
FILED AS OF DATE:		20000707

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MUNIYIELD INSURED FUND INC
		CENTRAL INDEX KEY:			0000883412
		STANDARD INDUSTRIAL CLASSIFICATION:	 [0000
]		STATE OF INCORPORATION:			NJ
		FISCAL YEAR END:			1031
</COMPANY-DATA>

		FILING VALUES:
			FORM TYPE:		DEF 14A
			SEC ACT:		
			SEC FILE NUMBER:	811-06540
			FILM NUMBER:		669464
</FILING-VALUES>

			BUSINESS ADDRESS:	
				STREET 1:		800 SCUDDERS MILL ROAD
				CITY:			PLAINSBORO
				STATE:			NJ
				ZIP:			08530
				BUSINESS PHONE:		6092822800
</BUSINESS-ADDRESS>
</FILER>
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>0001.htm
<DESCRIPTION>DEFINITIVE PROXY MATERIALS
<TEXT>


<HTML>
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<TITLE>
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  <body bgcolor="white">
<PAGE>

<P align="center"><B>As filed with the Securities and Exchange<BR>Commission on July&nbsp;7, 2000</B></P>

<P align="center"><B>PROXY STATEMENT PURSUANT<BR>
TO SECTION 14(A) OF THE
SECURITIES <BR>EXCHANGE ACT OF 1934 (AMENDMENT NO. &nbsp;&nbsp;)<BR>
</B>
</P>

<P>Filed by the Registrant /x/ Filed by a party other than the Registrant [&nbsp;]</P>

<P>Check the appropriate box: <BR>

[&nbsp;&nbsp;]&nbsp;&nbsp;Preliminary Proxy Statement<BR>
[&nbsp;&nbsp;]&nbsp;&nbsp;Confidential, for Use of the Commission Only<BR>
[X]&nbsp;&nbsp;Definitive Proxy Statement as permitted by Rule 14a-6(e)(2) <BR>
[&nbsp;&nbsp;]&nbsp;&nbsp;Definitive Additional Materials<BR>
[&nbsp;&nbsp;]&nbsp;&nbsp;Soliciting Material Pursuant to Rule 14a-11(c) or Rule 14a-12<BR>

</P>

<P align="center">MUNIYIELD INSURED FUND, INC.</P>
<HR>
<P align="center">(Name of Registrant as Specified in Its Charter)</P>

<P align="center">
<BR>
</P>
<HR>
<P align="center">(Name of Person(s) Filing Proxy Statement, if other than Registrant)</P>

<P>Payment of Filing Fee (check the appropriate box):<BR>

[X]&nbsp;&nbsp;No fee required.<BR>
[&nbsp;&nbsp;]&nbsp;&nbsp;Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
<BR>

<P>(1)&nbsp;&nbsp;Title of each class of securities to which transaction applies:</P>
<HR>

<P>(2)&nbsp;&nbsp;Aggregate number of securities to which transaction applies:</P>
<HR>

<P>(3)&nbsp;&nbsp;Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11
        (Set forth the amount on which the filing fee is calculated and state how it was determined.):</P>
<HR>

<P>(4)&nbsp;&nbsp;Proposed maximum aggregate value of transaction:</P>
<HR>

<P>(5)&nbsp;&nbsp;Total fee paid:</P>
<HR>

<PAGE>

<P>[&nbsp;&nbsp;]&nbsp;&nbsp;Fee paid previously with preliminary materials:</P>
<HR>

<P>
[&nbsp;&nbsp;]&nbsp;&nbsp;Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2)<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and identify the filing for which the offsetting fee was paid previously.  Identify the<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;previous filing by registration statement number, or the Form or Schedule and the date<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of its filing.
</P>

<P>(1)&nbsp;&nbsp;Amount previously paid:</P>
<HR>

<P>(2)&nbsp;&nbsp;Form, Schedule or Registration Statement No.:</P>
<HR>

<P>(3)&nbsp;&nbsp;Filing Party:</P>
<HR>

<P>(4)&nbsp;&nbsp;Date Filed:</P>
<HR>

<PAGE>
<H3 align="center">

MUNIYIELD INSURED FUND, INC.<BR>
P.O. Box 9011<BR> Princeton, New Jersey 08543-9011 <BR>
<HR size="1" width="150"><BR>
<B>NOTICE OF 2000 ANNUAL MEETING OF STOCKHOLDERS</B><BR>
<HR size="1" width="150"><BR>
August 23, 2000
</H3>

</B>
<P>T<FONT size="-2">O</FONT> T<FONT size="-2">HE</FONT> S<FONT size="-2">TOCKHOLDERS</FONT> <FONT size="-2">OF</FONT> M<FONT size="-2">UNI</FONT>Y<FONT size="-2">IELD</FONT> I<FONT size="-2">NSURED</FONT> F<FONT size="-2">UND</FONT>, I<FONT size="-2">NC
</FONT>.:
</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOTICE IS HEREBY GIVEN that the
2000
Annual Meeting of
Stockholders (the "Meeting") of MuniYield Insured
Fund, Inc. (the "Fund") will be held at the
offices of Merrill Lynch Investment Managers, L.P., 800 Scudders Mill
Road, Plainsboro, New Jersey, on Wednesday, August&nbsp;
23,
2000
at


10:15
a.m.
for the following purposes:
</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) To elect a Board of Directors to serve for the
ensuing year;
</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) To consider and act upon a proposal to ratify the
selection of Ernst &amp; Young LLP to serve as independent auditors of the
Fund for its current fiscal year;
and
</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)
To
transact such other business as may properly come before the Meeting or
any adjournment thereof.
</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors has fixed the close of business on
June&nbsp;27, 2000
as the
record date for the determination of stockholders entitled to notice of
and to vote at the Meeting or any adjournment thereof.
</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A complete list of the stockholders of the Fund entitled to vote
at the Meeting will be available and open to the examination of any
stockholder of the Fund for any purpose germane to the Meeting during
ordinary business hours from and after August&nbsp;
9,
2000,
at the office of the
Fund, 800 Scudders Mill Road, Plainsboro, New Jersey. You are cordially
invited to attend the Meeting. <B>Stockholders who do not expect to
attend the meeting in person are requested to complete, date and sign
the enclosed form of proxy and return it promptly in the envelope
provided for this purpose.
If you have been
provided with the opportunity on your proxy card or voting instruction
form to provide voting instructions via telephone or the internet,
please take advantage of these prompt and efficient voting
options.</B>
The enclosed proxy is being solicited on behalf of the Board
of Directors of the Fund.
</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you have any questions regarding the enclosed proxy material or
need assistance in voting your shares, please contact our proxy
solicitor, Shareholder Communications Corporation at
1-877-504-5019. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
By Order of the Board of Directors<BR><BR><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
B<FONT size="-2">RADLEY</FONT> J.
L<FONT size="-2">UCIDO</FONT><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Secretary</I>
</P>

<P>Plainsboro, New Jersey
<BR>Dated: July&nbsp;7, 2000
</P>
<PAGE>




<H3 align="center">PROXY STATEMENT<BR>
<HR size="1" width="150">
MUNIYIELD INSURED FUND, INC.<BR>
P.O. Box 9011<BR>
Princeton, New Jersey 08543-9011<BR>
<HR size="1" width="150">
2000
ANNUAL MEETING OF
STOCKHOLDERS<BR>
<HR size="1" width="150">
August&nbsp;23, 2000</H3>

<H3 align="center">INTRODUCTION</H3>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Proxy Statement is furnished in connection with the
solicitation of proxies on behalf of the Board of Directors of
MuniYield Insured Fund, Inc., a Maryland corporation (the
"Fund"), to be voted at the
2000
Annual Meeting of
Stockholders of the Fund (the "Meeting"), to be
held at the offices of Merrill Lynch Investment Managers, L.P.
("MLIM"), 800 Scudders Mill Road, Plainsboro, New
Jersey, on Wednesday, August&nbsp;23,
2000
at
10:15
a.m.
The approximate mailing date of this Proxy Statement is
July&nbsp;12, 2000.
</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All properly executed proxies received prior to the Meeting will
be voted at the Meeting in accordance with the instructions marked
thereon or otherwise as provided therein. Unless instructions to the
contrary are marked, proxies will be voted
<I>for
</I>the election of the Board of Directors
to serve for the ensuing year
and <I>for
</I>the
ratification of the selection of
independent auditors to serve for the Fund's current fiscal
year. Any proxy may be revoked at any time prior to
the exercise thereof by giving written notice to the Secretary of the
Fund at the Fund's address indicated above or by voting in person at
the Meeting.
</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors has fixed the close of business on June&nbsp;
27, 2000
as the record date
(the "Record Date") for the determination of
stockholders entitled to notice of and to vote at the Meeting and at
any adjournment thereof. Stockholders on the Record Date will be
entitled to one vote for each share held, with no shares having
cumulative voting rights. As of the Record Date, the Fund had
outstanding
61,945,880
shares of common stock, par value $.10 per share ("Common
Stock"), and
17,600
shares of
auction market preferred stock, par value $.05 per share and
liquidation preference of $25,000 per share plus an amount equal to
accumulated but unpaid dividends thereon
("AMPS"). To the knowledge of the Fund, as of the
Record Date, no person is the beneficial owner of more than five
percent of the outstanding shares of Common Stock or five percent of
the outstanding AMPS.
</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors of the Fund knows of no business other than
that mentioned in Items 1
and
2

of the Notice of
Meeting that will be presented for consideration at the Meeting. If any
other matter is properly presented, it is the intention of the persons
named in the enclosed proxy to vote in accordance with their best
judgment. </P>
<PAGE>


<H3 align="center">ITEM 1. ELECTION OF DIRECTORS
</H3>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the Meeting, the Board of Directors will be elected to serve
until the next Annual Meeting of Stockholders and until their
successors are elected and qualified. It is intended that all properly
executed proxies will be voted (unless such authority has been withheld
in the proxy) as follows:
</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) All such proxies of the holders of shares of AMPS,
voting separately as a class, in favor of the two (2) persons
designated as Directors to be elected by holders of AMPS; and
</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) All such proxies of the holders of shares of Common
Stock and AMPS, voting together as a single class, will be voted in
favor of the five (5) persons designated as Directors to be elected by
holders of Common Stock and AMPS.
</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors of the Fund knows of no reason why any of
these nominees will be unable to serve, but in the event of any such
unavailability, the proxies received will be voted for such substitute
nominee or nominees as the Board of Directors may recommend.
</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain information concerning the nominees, including their
designated classes, is set forth as follows:

<H3 align="left">To Be Elected
by
Holders of AMPS, Voting Separately as a Class:
</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</H3>

</P>
<TABLE align="center" cellpadding="5">
<TR valign="bottom">
<TH></TH><TH></TH><TH></TH><TH></TH>
<TH colspan="2">Shares Beneficially<BR> Owned at the<BR>
Record Date<BR>
<HR size="1" width="100%">
</TH></TR>
<TR valign="bottom">
<TH width="300">Name and Address of Nominee<BR>
<HR size="1" width="100%"></TH>
<TH>Age<BR>
<HR size="1" width="100%"></TH>
<TH>Principal Occupation During Past<BR>Five Years and Public Directorships<sup>(1)</sup><BR>
<HR size="1" width="100%"></TH>
<TH>Director<BR>Since<BR>
<HR size="1" width="100%"></TH>
<TH>Common<BR>Stock<BR>
<HR size="1" width="100%"></TH>
<TH>AMPS<BR><HR size="1" width="100%"></TH>
</TR>
<TR align="right" valign="top"><TD align="left" valign="top">Walter Mintz<sup>(1)(2)</sup><BR>1114 Avenue of the Americas<BR>New York, New York 10036</TD>
<TD>71</TD>
<TD align="left">Special Limited Partner of Cumberland Associates (investment partnership) since 1982.</TD>
<TD>1992</TD><TD align="center">0</TD><TD align="center">0</TD></TR>
<TR align="right" valign="top">
<TD align="left"></TD>
<TD></TD>
</TR>
<TR align="right" valign="top"><TD align="left" valign="top">Melvin R. Seiden<sup>(1)(2)</sup><BR>780 Third Avenue<BR> Suite 2502<BR> New York, New York 10017</TD>
<TD>69</TD>
<TD align="left">Director of Silbanc Properties, Ltd.
(real estate, investment and consulting) since 1987; Chairman and
President of Seiden &amp; de Cuevas, Inc. (private investment firm) from
1964 to 1987.</TD>
<TD>1992</TD><TD align="center">0</TD><TD align="center">0</TD>
</TR>
</TABLE>
<P align="center">2</P>
<PAGE>
<H3 align="left">To Be Elected by Holders of Common Stock and AMPS, Voting Together
as a Single Class: </H3>
<TABLE align="center" cellpadding="5">
<TR valign="bottom">
<TH></TH><TH></TH><TH></TH><TH></TH>
<TH colspan="2">Shares Beneficially<BR> Owned at the<BR>
Record Date<BR>
<HR size="1" width="100%">
</TH></TR>
<TR valign="bottom">
<TH width="300">Name and Address of Nominee<BR>
<HR size="1" width="100%"></TH>
<TH>Age<BR>
<HR size="1" width="100%"></TH>
<TH>Principal Occupation During Past<BR>Five Years and Public Directorships&nbsp;<sup>(1)</sup><BR>
<HR size="1" width="100%"></TH>
<TH>Director<BR>Since<BR>
<HR size="1" width="100%"></TH>
<TH>Common<BR>Stock<BR>
<HR size="1" width="100%"></TH>
<TH>AMPS<BR><HR size="1" width="100%"></TH></TR>

<TR align="right" valign="top"><TD align="left" valign="top">Terry K. Glenn<sup>(1)*</sup><BR>
P.O. Box 9011<BR>
Princeton, New Jersey<BR>08543-9011</TD>
<TD>59</TD>
<TD align="left">Executive Vice President of MLIM
and Fund Asset Management, L.P. ("FAM") (which
terms as used herein include their corporate predecessors) since 1983;
Executive Vice President and Director of Princeton Services, Inc.
("Princeton Services") since 1993; President of
FAM Distributors, Inc. ("FAMD") since
1986 and Director thereof since 1991; President of Princeton
Administrators, L.P. since 1988. </TD>
<TD>1999</TD>
<TD align="center">0</TD>
<TD align="center">0</TD>
</TR>

<TD></TD>
</TR>

<TR align="right" valign="top"><TD align="left" valign="top">Joe Grills<sup>(1)(2)</sup><BR>P.O. Box
98<BR>Rapidan, Virginia 22733
</TD>
<TD>65</TD>
<TD align="left">Member of the
Committee of Investment of
Employee Benefit Assets of the Association for Financial Professionals
("CIEBA") since 1986, Member of CIEBA's
Executive Committee since 1988 and its Chairman from 1991 to
1993; Assistant Treasurer of
International Business Machines</TD>
<TD>1994</TD>
<TD align="center">0</TD>
<TD align="center">0</TD>
</TR>

<TD></TD>
</TR>
</TABLE>

<P align="center">3</P>
<PAGE>


<TABLE align="center" cellpadding="5">
<TR valign="bottom">
<TH></TH><TH></TH><TH></TH><TH></TH>
<TH colspan="2">Shares Beneficially<BR> Owned at the<BR>
Record Date<BR>
<HR size="1" width="100%">
</TH></TR>
<TR valign="bottom">
<TH width="300">Name and Address of Nominee<BR>
<HR size="1" width="100%"></TH>
<TH>Age<BR>
<HR size="1" width="100%"></TH>
<TH>Principal Occupation During Past<BR>Five Years and Public Directorships&nbsp;<sup>(1)</sup><BR>
<HR size="1" width="100%"></TH>
<TH>Director<BR>Since<BR>
<HR size="1" width="100%"></TH>
<TH>Common<BR>Stock<BR>
<HR size="1" width="100%"></TH>
<TH>AMPS<BR><HR size="1" width="100%"></TH></TR>

<TR align="right" valign="top"><TD align="left" valign="top">Joe Grills
(continued)
</TD><TD>
</TD>
<TD align="left">
Corporation ("IBM") and Chief
Investment Officer of IBM Retirement Funds from 1986 until 1993; Member
of the Investment Advisory Committees of the State of New York Common
Retirement Fund and the Howard Hughes Medical Institute since 1997;
Director, Duke Management Company
since 1992
and Vice Chairman since 1998; Director, LaSalle Street Fund
since 1995; Director, Hotchkis and Wiley Mutual Funds since 1996;
Director, Kimco Realty Corporation since 1997; Member of the Investment
Advisory Committee of the Virginia Retirement System since 1998;
Director, Montpelier Foundation since 1998; Member of the Investment
Committee of the Woodberry Forest School since April, 2000 </TD>
</TR></TABLE>
<P align="center">4</P>
<PAGE>

<TABLE align="center" cellpadding="5">
<TR valign="bottom">
<TH></TH><TH></TH><TH></TH><TH></TH>
<TH colspan="2">Shares Beneficially<BR> Owned at the<BR>
Record Date<BR>
<HR size="1" width="100%">
</TH></TR>
<TR valign="bottom">
<TH width="300">Name and Address of Nominee<BR>
<HR size="1" width="100%"></TH>
<TH>Age<BR>
<HR size="1" width="100%"></TH>
<TH>Principal Occupation During Past<BR>Five Years and Public Directorships&nbsp;<sup>(1)</sup><BR>
<HR size="1" width="100%"></TH>
<TH>Director<BR>Since<BR>
<HR size="1" width="100%"></TH>
<TH>Common<BR>Stock<BR>
<HR size="1" width="100%"></TH>
<TH>AMPS<BR><HR size="1" width="100%"></TH></TR>

<TR align="right" valign="top"><TD align="left" valign="top">Robert S. Salomon, Jr.<sup>(1)(2)</sup><BR>106
Dolphin Cove Quay<BR> Stamford, Connecticut
06902

</TD>
<TD>63 </TD>
<TD align="left">Principal of STI
Management (investment adviser) since 1994; Chairman and
CEO of Salomon Brothers Asset Management from 1992 until 1995;
Chairman of
Salomon Brothers equity mutual funds from
1992 until 1995; Regular columnist
with the <I>Forbes
</I>Magazine since 1992;
Director of Stock Research and U.S. Equity Strategist
at Salomon Brothers Inc. from 1975 until
1991; Trustee, Commonfund since 1980. </TD>
<TD>1996</TD>
<TD align="center">0</TD>
<TD align="center">0</TD>
</TR>
<TD></TD>
</TR>
<TR align="right" valign="top"><TD align="left">Stephen B.
Swensrud<sup>(1)(2)</sup><BR>88
Broad Street
  2nd
Floor<BR>Boston,
Massachusetts 02110
</TD>
<TD>67 </TD>
<TD align="left">Chairman of
Fernwood Advisors (investment adviser) since
1996; Principal of Fernwood Associates (financial consultant) since
1975; Chairman of RPP Corporation (manufacturing) since
1978; Director of International
Mobile Communications, Inc. (telecommunications) since 1998.
</TD>
<TD>1992</TD>
<TD align="center">0</TD>
<TD align="center">0</TD>
</TR>
<TD></TD>
</TR>
<TR align="right" valign="top"><TD align="left">Arthur Zeikel<sup>(1)*</sup><BR>300
Woodland Avenue<BR>Westfield, New Jersey 07090
</TD>
<TD>68 </TD>
<TD align="left">Chairman of FAM
and MLIM from 1997 to 1999; President of FAM and MLIM from 1977 to 1997;
Chairman of Princeton Services from 1997 to 1999 and
Director thereof
from 1993 to 1999; President of Princeton Services
from 1993 to 1997; Executive Vice President of Merrill Lynch &amp; Co.,
Inc. ("ML &amp; Co.") from 1990 to 1999.</TD>
<TD>1992 </TD>
<TD align="center">0</TD>
<TD align="center">0</TD>
</TR>
</TD>
<TD></TD>
</TR>
</TABLE>
<BR>
<HR size="1" width="150" align="left">
<P>(1) Each of the nominees is a director,
trustee or member of an advisory board of certain other investment
companies for which FAM or MLIM acts as investment adviser. See
"Compensation of Directors" below. </P>
<P>(2) Member of the Audit Committee of the
Board of Directors. </P>
<P><sup>*</sup> Interested person, as defined
in the Investment Company Act of 1940, as amended (the
"Investment Company Act"), of the Fund.</P>
<P align="center">5</P>
<PAGE>



<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Committee and Board of Directors' Meetings.</I> The Board
of Directors has a standing Audit Committee, which consists of the
Directors who are not "interested persons" of the Fund within the
meaning of the Investment Company Act. The principal purpose of the
Audit Committee is to review the scope of the annual audit conducted by
the Fund's independent auditors and the evaluation by such auditors of
the accounting procedures followed by the Fund.
The
Audit Committee also reviews and nominates candidates to serve as
non-interested Directors. The Audit
Committee generally will not consider nominees recommended by
stockholders of the Fund. The
non-interested Directors have retained independent legal counsel to
assist them in connection with these
duties.


</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the fiscal year ended October&nbsp;31,
1999,
the Board of Directors
held four meetings
and the Audit Committee held four meetings. Each
of the Directors then in office attended at least 75% of the aggregate
of the total number of meetings of the Board of Directors and, if a
member, of the total number of meetings of the Audit Committee held
during such period.
</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Compliance with Section 16(a) of the Securities Exchange Act
of 1934.</I> Section 16(a) of the Securities Exchange Act of 1934, as
amended (the "Exchange Act"), requires the Fund's officers and
directors and persons who own more than ten percent of a registered
class of the Fund's equity securities, to file reports of ownership
and changes in ownership on Forms 3, 4 and 5 with the Securities and
Exchange Commission ("SEC") and the New York
Stock Exchange. Officers, directors and greater than ten percent
stockholders are required by SEC regulations to furnish the Fund with
copies of all Forms 3, 4 and 5 they file.
</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based solely on the Fund's review of the copies of such forms, and
amendments thereto, furnished to it during or with respect to its most
recent fiscal year, and written representations from certain reporting
persons that they were not required to file Form 5 with respect to the
most recent fiscal year, the Fund believes that,

all
of its officers, directors, greater than ten percent beneficial owners
and other persons subject to Section 16 of the Exchange Act due to the
requirements of Section 30 of the Investment Company
Act

 (i.e., any advisory board member, investment
adviser or affiliated person of the Fund's investment adviser), have
complied with all filing requirements applicable to them with respect
to transactions during the Fund's most recent fiscal year.
</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Interested Persons.</I> The Fund considers Mr. Zeikel and
Mr. Glenn to be "interested persons" of the Fund within the
meaning of Section 2(a)(19) of the Investment Company Act due to the
positions each holds or has held with FAM and its affiliates and/or due
to their ownership of securities issued by ML &amp; Co. Mr. Glenn is the
President of the Fund.
</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Compensation of Directors.</I> FAM, the Fund's investment
adviser, pays all compensation of all officers of the Fund and all
Directors of the Fund who are affiliated with ML &amp; Co. or its
subsidiaries. The Fund pays each Director not affiliated with FAM (each
a "non-interested Director") a fee of $4,000 per year plus $1,000
per meeting attended, together with such Director's actual
out-of-pocket expenses relating to attendance at meetings. The Fund
also pays each member of its Audit Committee, which consists of all the
non-interested Directors, a fee of $4,000 per year plus $750 per
meeting attended, together with such Director's out-of-pocket expenses
relating to attendance at meetings. These fees and expenses aggregated
$75,710
for the fiscal
year ended October&nbsp;31,
1999.
</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth for the fiscal year ended
October&nbsp;31, 1999
compensation
paid by the Fund to the non-interested Directors and, for
the calendar year ended December&nbsp;31,
1999,
the aggregate
compensation paid by all investment companies advised by FAM and its
affiliate, MLIM ("FAM/MLIM Advised Funds"), to the non-interested
Directors. </P>
<P align="center">6</P>
<PAGE>






<TABLE align="center" cellpadding="5">
<TR valign="bottom">
<TH>Name of Director<BR>
<HR size="1" width="100%"></TH>
<TH>Compensation<BR>From Fund<BR>
<HR size="1" width="100%"></TH><TH>Pension or<BR>Retirement Benefits<BR>Accrued as Part<BR>of Fund Expenses<BR>
<HR size="1" width="100%"></TH><TH>Aggregate<BR>Compensation<BR>From Fund And Other<BR>FAM/MLIM Advised<BR>Funds Paid to Directors<BR><HR size="1" width="100%"></TH></TR>

<TR align="right" valign="bottom"><TD align="left">Joe Grills<sup>(1)</sup>
</TD>
<TD align="center">$15,000 </TD>
<TD align="center">None
</TD>
<TD align="center">$245,250 </TD>
</TR>
<TR align="right" valign="bottom"><TD align="left">Walter
Mintz<sup>(1)</sup> </TD>
<TD align="center">$15,000 </TD>
<TD align="center">None
</TD>
<TD align="center">$211,250 </TD>
</TR>
<TR align="right" valign="bottom"><TD align="left">Robert S.
Salomon, Jr.<sup>(1)</sup> </TD>
<TD align="center">$15,000 </TD>
<TD align="center">None
</TD>
<TD align="center">$211,250 </TD>
</TR>
<TR align="right" valign="bottom"><TD align="left">Melvin R.
Seiden<sup>(1)</sup> </TD>
<TD align="center">$15,000 </TD>
<TD align="center">None
</TD>
<TD align="center">$211,250 </TD>
</TR>
<TR align="right" valign="bottom"><TD align="left">Stephen B.
Swensrud<sup>(1)</sup> </TD>
<TD align="center">$15,000
</TD>
<TD align="center">None</TD>
<TD align="center">$232,250</TD>
</TR></TABLE>

<BR>
<HR size="1" width="150" align="left">
<P>(1) The Directors serve on the boards of other FAM/MLIM
Advised Funds as follows: Mr. Grills
(31
registered investment
companies consisting of
47
portfolios); Mr. Mintz
(21
registered
investment companies consisting of
43
portfolios); Mr.
Salomon (21
registered
investment companies consisting of 43 portfolios); Mr. Seiden
(21
registered investment
companies consisting of 43 portfolios); Mr. Swensrud
(30
registered investment
companies consisting of
67
portfolios). </P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Officers of the Fund.</I> The Board of Directors has elected
six officers of the Fund. The following sets forth information
concerning each of these officers:
</P>


<TABLE align="center" cellpadding="5">
<TR valign="bottom">
<TH width="300">Name and Principal Occupation<BR>
<HR size="1" width="100%"></TH>
<TH width="300">Office<BR><HR size="1" width="100%"></TH>
<TH>Age<BR><HR size="1" width="100%"></TH>
<TH>Officer Since<BR><HR size="1" width="100%"></TH></TR>

<TR align="left" valign="top"><TD width="300">Terry K. Glenn<BR>
Executive Vice President of FAM and MLIM since 1983; Executive
Vice President and Director of Princeton Services since 1993; President
of FAMD since 1986 and Director thereof since 1991; President of
Princeton Administrators, L.P. since 1988.
</TD>
<TD>President</TD>
<TD>59 </TD>
<TD>1992*</TD>
</TR>

<TR align="left" valign="top"><TD width="300">Vincent R. Giordano <BR>Senior Vice President of FAM and MLIM since 1984; Senior Vice
President of Princeton Services since 1993.
</TD>
<TD>Senior Vice President</TD>
<TD>55 </TD>
<TD>1992</TD>
</TR>


<TR align="left" valign="top"><TD width="300">Kenneth A. Jacob<BR>First Vice President of MLIM since 1997; Vice President of
MLIM from 1984 to 1997; Vice
President of FAM since 1984.</TD>
<TD>Vice President</TD>
<TD>49 </TD>
<TD>1992</TD>
</TR>

<TR align="left" valign="top"><TD width="300">William R. Bock <BR>Vice President of MLIM since 1989.</TD>
<TD>Vice President
</TD>
<TD>64 </TD>
<TD>1997</TD>
</TR>
</TD></TR></TABLE>
<P align="center">7</P>
<PAGE>

<TABLE align="center" cellpadding="5">
<TR valign="bottom">
<TH width="300">Name and Principal Occupation<BR>
<HR size="1" width="100%"></TH>
<TH width="300">Office<BR><HR size="1" width="100%"></TH>
<TH>Age<BR><HR size="1" width="100%"></TH>
<TH>Officer Since<BR><HR size="1" width="100%"></TH></TR>

<TR align="left" valign="top"><TD width="300">Donald C. Burke <BR>Senior Vice President and Treasurer of FAM and MLIM since
1999; Senior Vice President and Treasurer of Princeton Services since
1999; Vice President of FAMD since 1999; First Vice President of MLIM
from 1997 to 1999; Vice President of MLIM from 1990 to 1997; Director
of Taxation of MLIM since 1990.</TD>
<TD>Vice President and Treasurer </TD>
<TD>40</TD>
<TD>1993</TD>
</TR>

<TR align="left" valign="top"><TD width="300">Bradley J. Lucido<BR>Vice President of MLIM since 1999; attorney with MLIM
since 1995; attorney in private practice from 1991 to 1995.</TD>
<TD>Secretary </TD>
<TD>34</TD>
<TD>1999</TD>
</TR></TABLE>

<BR>
<HR size="1" width="150" align="left">
<P>* Mr. Glenn was elected President of the Fund in 1999. Prior to
that he served as Executive Vice President.</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Stock Ownership.</I> At the Record Date, the Directors and
officers of the Fund as a group (12 persons) owned an aggregate of less
than 1% of the Common Stock of the Fund outstanding at such date and
owned none of the AMPS outstanding at such date. At such date, Mr.
Zeikel, a Director of the Fund, and Mr. Glenn, an officer and a
Director of the Fund, and the other officers of the Fund owned an
aggregate of less than 1% of the outstanding shares of common stock of
ML &amp; Co. </P>

<H3 align="center">ITEM 2. RATIFICATION OF THE SELECTION OF INDEPENDENT AUDITORS </H3>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors of the Fund, including a majority of the
Directors who are not interested persons of the Fund, has selected the
firm of Ernst &amp; Young LLP ("E&amp;Y"), independent
auditors, to examine the financial statements of the Fund for the
current fiscal year. The Fund knows of no direct or indirect financial
interest of such firm in the Fund. Such appointment is subject to
ratification or rejection by the stockholders of the Fund. Unless a
contrary specification is made, the accompanying proxy will be voted in
favor of ratifying the selection of such auditors.
</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E&amp;Y also acts as independent auditors for other investment
companies for which FAM acts as investment adviser. The fees received
by E&amp;Y from these other entities are substantially greater, in the
aggregate, than the fees received by it from the Fund. The Board of
Directors of the Fund considered the fact that E&amp;Y has been retained as
the independent auditors for such other entities in its evaluation of
the independence of E&amp;Y with respect to the Fund.
</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Representatives of E&amp;Y are expected to be present at the meeting
and will have the opportunity to make a statement if they so desire and
to respond to questions from
stockholders.

 </P>
<P align="center">8</P>
<PAGE>





<H3 align="center">LEGAL PROCEEDINGS
</H3>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On June&nbsp;21, 1996, a
putative
class action titled
<I>Jack Green, et al. v. Fund Asset Management, L.P., et al.</I>
was filed in the United States District Court for the District of
Massachusetts. Among the named defendants in the action are seven of
the leveraged closed-end municipal bond funds (including the Fund) for
which FAM serves as the investment
adviser. In
addition
to the named defendants, plaintiffs also purport to
assert
claims against a
defendant class consisting of all other publicly traded, closed-end
investment companies for which FAM serves as investment adviser and
which, among other things, have issued AMPS. The named plaintiffs, who
claim to be investors in the seven named funds, purport to bring the
action on behalf of a class consisting of all holders of the common
stock of the subject funds.
</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plaintiffs allege that FAM and other affiliated defendants
received excessive compensation for managing the subject funds.
Plaintiffs claim, among other things, that the registration statements,
annual reports and other documents filed by the funds with the SEC were
misleading because such documents allegedly failed to disclose that
proceeds arising from the issuance of AMPS would be included in a
fund's net assets for the purposes of calculating the investment
advisory fee payable to FAM. In addition, plaintiffs allege that a
conflict of interest existed because it would always be in the
defendants' interest to keep the funds fully leveraged to maximize the
advisory fees and collateral compensation notwithstanding adverse
market conditions. Plaintiffs also allege an additional conflict of
interest arising from the receipt by such affiliates of underwriting
discounts, or other revenues in connection with the sale of the AMPS by
the funds. The complaint also attempted to
assert
claims under Sections 8(e), 34(b), 36(a) and
36(b) of the Investment Company Act and the common law. Plaintiffs seek
unspecified monetary damages as well as injunctive
relief. By order dated July 16, 1997, the District Court
Judge ordered the case transferred to the District of New
Jersey.
</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On September&nbsp;17, 1997, defendants moved to dismiss
plaintiffs' complaint on the ground that

plaintiffs had failed to state a claim upon which
relief could be granted. On February&nbsp;23, 1998, the Court granted
defendants' motion in substantial part and dismissed plaintiffs'
claims under Sections 8(e), 34(b) and 36(a) of the Investment Company
Act with prejudice, but declined to dismiss plaintiffs' claims under
Section 36(b) and state law.

Defendants filed an
Answer on April&nbsp;30, 1998, denying the substantive allegations in
the First Amended Complaint. The Court subsequently
granted
defendants'
motion to dismiss plaintiffs' state law claims for breach of fiduciary
duty and deceit, holding that Section 36(b) preempted these state law
claims. Plaintiffs have appealed this decision. The Third Circuit
agreed to hear plaintiffs' appeal and a decision is pending. Discovery in the case is
ongoing.

</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The defendants believe that the plaintiffs' allegations are


without merit and intend to defend the action
vigorously. FAM has agreed to indemnify the named defendant funds for
any liabilities or expenses that they may incur in connection with this
litigation.
</P>

<H3 align="center">ADDITIONAL INFORMATION
</H3>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The expenses of preparation, printing and mailing of the enclosed
form of proxy and accompanying Notice and Proxy Statement will be borne
by the Fund. The Fund will reimburse banks, brokers and others for
their reasonable expenses in forwarding proxy solicitation material to
the beneficial owners of the shares of the Fund.
</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to obtain the necessary quorum at the Meeting (i.e., a
majority of the shares of each class of the Fund's securities entitled
to vote at the Meeting, present in person or by proxy), supplementary
solicitation may be made by mail, telephone, telegraph or personal
interview by officers of the Fund. The Fund has retained
Shareholder Communications Corporation,
17 State Street, New York, New York 10004,
1-877-504-5019,


to assist in the solicitation of proxies at a cost to the Fund of
approximately $3,500, plus out-of-pocket expenses
estimated to be $200.
</P>
<P align="center">9</P>
<PAGE>




<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All shares represented by properly executed proxies, unless such
proxies have previously been revoked, will be voted at the Meeting in
accordance with the directions on the proxies; if no direction is
indicated, the shares will be voted "FOR" the Director
nominees and
"FOR"
the ratification of E&amp;Y as independent
auditors.

</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With
respect to Item 1, "Election of Directors," holders of
AMPS, voting separately as a class, are entitled to elect the two
Directors designated above and holders of Common Stock and AMPS, voting
together as a single class, are entitled to elect the remaining
Directors. Assuming a quorum is present, (i)&nbsp;election of the two
Directors to be elected by the holders of AMPS, voting separately as a
class, will require a majority of the votes cast by the holders of
AMPS

 represented at the Meeting and entitled to
vote; and
(ii) election of
the remaining Directors will require a majority of the votes cast by
the holders of Common Stock and the AMPS represented at the Meeting and
entitled to vote, voting together as a single class.
</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With respect to Item
2,
"Ratification of the
Selection of Independent Auditors," assuming a quorum is present,
approval will require the affirmative vote of a majority of the votes
cast by the holders of shares of Common Stock and the AMPS
represented,
present in person or by proxy at
the Meeting and entitled to vote, voting together as a single
class.


</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Broker-dealer firms, including Merrill Lynch, Pierce, Fenner &amp;
Smith Incorporated ("MLPF&amp;S"'), holding Fund
shares in "street name" for the benefit of their customers and
clients, will request the instructions of such customers and clients on
how to vote their shares on each Item before the Meeting. The Fund
understands that, under the rules of the New York Stock Exchange, such
broker-dealer firms may, without instructions from their customers and
clients, grant authority to the proxies designated to vote on the
election of Directors (Item 1) and ratification of the selection of
independent auditors (Item 2) if no instructions have been received
prior to the date specified in the broker-dealer firm's request for
voting instructions.

The Fund will
include shares held of record by broker-dealers as to which such
authority has been granted in its tabulation of the total number of
votes present for purposes of determining whether the necessary quorum
of stockholders exists. Proxies that are returned but that are marked
"abstain" or on which a broker-dealer has declined to vote on any
proposal ("broker non-votes") will be counted as present for the
purposes of a quorum. MLPF&amp;S has advised the Fund that it intends to
vote shares held in its name for which no instructions have been
received except as limited by agreement or applicable law, on Items 1
and 2

in the same proportion as the votes received
from beneficial owners of those shares for which instructions have been
received, whether or not held in nominee name. Abstentions and broker
non-votes will not be counted as votes cast. Abstentions and broker
non-votes, therefore, will not have an effect on the vote on Item 1 or
Item 2.
</P>


<H3 align="left">Address of Investment Adviser</H3>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The principal office of FAM is located at 800 Scudders Mill Road,
Plainsboro, New Jersey 08536. </P>

<H3 align="left">Annual Report Delivery</H3>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The Fund will furnish, without
charge, a copy of its annual report for the fiscal year ended
October&nbsp;31, 1999
or its
semi-annual
report for the
six months ended April&nbsp;30,
2000
to any stockholder upon
request.</B> Such requests should be
directed to MuniYield Insured Fund, Inc., P.O. Box 9011, Princeton, New
Jersey 08543-9011, Attention: Bradley J. Lucido, Secretary, or to
1-800-456-4587 ext. 123.</P>
<P align="center">10</P>
<PAGE>


<H3 align="left">Stockholder Proposals</H3>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is currently intended that the
2001
Annual Meeting of
Stockholders of the Fund will be held in August,
2001.
If a stockholder
intends to present a proposal at the
2001
Annual Meeting of
Stockholders of the Fund and desires to have the proposal included in
the Fund's proxy statement and form of proxy for that meeting, the
stockholder must deliver the proposal to the offices of the Fund by
March&nbsp;9, 2001. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
By Order of the Board of Directors<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
B<FONT size="-2">RADLEY</FONT> J. L<FONT size="-2">UCIDO</FONT><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Secretary</I>
</P>
<P>Dated: July&nbsp;7, 2000</P>
<P align="center">11</P>
<PAGE>

<P align="right">
<B><FONT size=2 face="serif">COMMON STOCK</FONT></B>
</P>
<P align="center">
<B><FONT size=2 face="serif">
MUNIYIELD INSURED FUND, INC.<BR>
P.O. Box 9011<BR>
Princeton, New Jersey  08543-9011</FONT></B><BR>
</P>
<P align="center">
<B><FONT size=2 face="serif">PROXY</FONT></B>
</P>
<P align="center">
<B><FONT size=2 face="serif">This proxy is solicited on behalf of the Board of Directors</FONT></B>
</P>
<P>
<FONT size=2 face="serif">The undersigned hereby appoints Donald C. Burke, Terry K. Glenn and Bradley J. Lucido as proxies, each with the power to appoint his substitute, and hereby authorizes each of them to represent and to vote, as designated on the
reverse hereof, all the Common Stock of MuniYield Insured Fund, Inc. (the &#147;Fund&#148;) held of record by the undersigned on June 27, 2000 at the annual meeting of stockholders of the Fund to be held on August 23, 2000 or any adjournment thereof.</FONT>
</P>
<BLOCKQUOTE>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">This proxy when properly executed will be voted in the manner directed herein by the undersigned stockholder.  If no direction is made, this proxy will be voted FOR Proposals 1 and 2.</FONT></B>
</BLOCKQUOTE>
<P>
<FONT size=2 face="serif">By signing and dating the reverse side of this card, you authorize the proxies to vote each proposal as marked, or if not marked, to vote &#147;FOR&#148; each proposal, and to use their discretion to vote for any other matter as
may properly come before the meeting or any adjournment thereof. If you do not intend to personally attend the meeting, please complete and return this card at once in the enclosed envelope.</FONT>
</P>
<P align="right">
<FONT size=1 face="serif">(Continued and to be signed on the reverse side)</FONT>
</P>
<PAGE>
<P>
<FONT size=1 face="serif">Please mark boxes </FONT><B><FONT size=1 face="WingDings">n</FONT></B><FONT size=1 face="serif"> or </FONT><B><FONT size=1 face="WingDings">&thorn;</FONT></B><FONT size=1 face="serif"> in blue or black ink.</FONT>
</P>
<TABLE>
<TR>
    <TD><FONT size=1 face="serif">1.</FONT>&nbsp;  ELECTION OF DIRECTORS</FONT></TD>
    <TD><B><FONT size=1 face="serif"><B>FOR</B> all nominees listed below <BR>
           (except as marked to the contrary below) </FONT><B><FONT size=1 face="WingDings">o</FONT></B></TD>
    <TD><B><FONT size=1 face="serif">WITHHOLD AUTHORITY </FONT></B><BR><FONT size=1 face="serif">to vote for all nominees listed below </FONT><B><FONT size=1 face="WingDings">o</FONT></B></TD>
</TR>
</TABLE>
<P>
<B><I><FONT size=1 face="serif">(INSTRUCTION:  To withhold authority to vote for any individual nominee, strike a line through the nominee&#146;s name in the list below.)</FONT></I></B>
<BR><B><FONT size=1 face="serif">Terry K. Glenn, Joe Grills,  Robert S. Salomon, Jr., Stephen B. Swensrud and Arthur Zeikel</FONT></B>
</P>

</TABLE>
<TABLE>
<TR>
   <TD valign="top" width="5%"><FONT size=2 face="serif">2.</FONT><BR>&nbsp;&nbsp;</TD>
   <TD valign="top"><FONT size=2 face="serif">Proposal to ratify the selection of Ernst &amp; Young LLP as the independent auditors of the Fund to serve for the current fiscal year.</FONT><BR>   </TD>
</TR>
</TABLE>

</TABLE>
<TABLE>
<TR>

    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        <B><FONT size=1 face="serif">FOR </FONT></B><B><FONT size=1 face="WingDings">o</FONT></B></TD>

    <TD><B><FONT size=1 face="serif">AGAINST </FONT></B><B><FONT size=1 face="WingDings">o</FONT></B></TD>

    <TD><B><FONT size=1 face="serif">ABSTAIN </FONT></B><B><FONT size=1 face="WingDings">o</FONT></B></TD>
</TR>
</TABLE>

</TABLE>
<TABLE>
<TR>
   <TD valign="top" width="5%"><FONT size=2 face="serif">3.</FONT><BR>&nbsp;&nbsp;</TD>
   <TD valign="top"><FONT size=2 face="serif">In the discretion of such proxies, upon such other business as may properly come before the meeting or any adjournment thereof.</FONT><BR>   </TD>
</TR>
</TABLE>
<BLOCKQUOTE>
  <BLOCKQUOTE>
  <BLOCKQUOTE>
  <BLOCKQUOTE>
  <BLOCKQUOTE>
  <BLOCKQUOTE>
    <P>
      <FONT size=1 face="serif">Please sign exactly as name appears hereon.
When stock is held by joint tenants, both should sign. When signing as attorney or as executor, administrator, trustee
or guardian, please give full title as such. If a corporation,
please sign in full corporate name by president or other authorized officer. If a partnership,
please sign in partnership name by authorized person.
</FONT>
    </P>

<P>
<FONT size=1 face="serif">Dated:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
, 2000</FONT>
</P>
<P>
<HR>
<FONT size=1 face="serif">Signature</FONT>
</P>

<P>
<HR>
<FONT size=1 face="serif">Signature, if held jointly</FONT>
</P>
  </BLOCKQUOTE>
  </BLOCKQUOTE>
  </BLOCKQUOTE>
  </BLOCKQUOTE>
  </BLOCKQUOTE>
</BLOCKQUOTE>

<P>
<B><FONT size=1 face="serif">Sign, Date and Return the Proxy Card Promptly Using the Enclosed Envelope.</FONT></B>
</P>
<P align="center">
<FONT size=2 face="serif">2</FONT>
</P>
<PAGE>
<P align="right">
<B><FONT size=2 face="serif">AUCTION MARKET<BR> PREFERRED STOCK</FONT></B>
</P>
<P align="center">
  <B><FONT size=2 face="serif">MUNIYIELD INSURED FUND, INC.</FONT></B><BR>
  <B><FONT size=2 face="serif">P.O. Box 9011</FONT></B><BR>
  <B><FONT size=2 face="serif">Princeton, New Jersey  08543-9011</FONT></B><BR>
</P>
<P align="center">
<B><FONT size=2 face="serif">PROXY</FONT></B>
</P>
<P align="center">
<B><FONT size=2 face="serif">This proxy is solicited on behalf of the Board of Directors</FONT></B>
</P>
<P>
<FONT size=2 face="serif">The undersigned hereby appoints Donald C. Burke, Terry K. Glenn and Bradley J. Lucido as proxies, each with the power to appoint his substitute, and hereby authorizes each of them to represent and to vote, as designated on the
reverse hereof, all the Auction Market Preferred Stock of MuniYield Insured Fund, Inc. (the &#147;Fund&#148;) held of record by the undersigned on June 27, 2000 at the annual meeting of stockholders of the Fund to be held on August 23, 2000 or any
adjournment thereof.</FONT>
</P>
<BLOCKQUOTE>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">This proxy when properly executed will be voted in the manner directed herein by the undersigned stockholder.  If no direction is made, this proxy will be voted FOR Proposals 1 and 2.</FONT></B>
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</BLOCKQUOTE>
<P>
<FONT size=2 face="serif">By signing and dating the reverse side of this card, you authorize the proxies to vote each proposal as marked, or if not marked, to vote &#147;FOR&#148; each proposal, and to use their discretion to vote for any other matter as
may properly come before the meeting or any adjournment thereof. If you do not intend to personally attend the meeting, please complete and return this card at once in the enclosed envelope.</FONT>
</P>
<P align="right">
<FONT size=1 face="serif">(Continued and to be signed on the reverse side)</FONT>
</P>
<P align="center">
<FONT size=2 face="serif">3</FONT>
</P>
<PAGE>

<P>
<FONT size=1 face="serif">Please mark boxes </FONT><B><FONT size=1 face="WingDings">n</FONT></B><FONT size=1 face="serif"> or </FONT><B><FONT size=1 face="WingDings">&thorn;</FONT></B><FONT size=1 face="serif"> in blue or black ink.</FONT>
</P>

</TABLE>
<TABLE>
<TR>
    <TD><FONT size=2 face="serif">1.</FONT>&nbsp; ELECTION OF DIRECTORS</FONT></TD>
    <TD><FONT size=1 face="serif"><B>FOR</B> all nominees listed below <BR>
           (except as marked to the contrary below) </FONT><B><FONT size=1 face="WingDings">o</FONT></B></TD>
    <TD><B><FONT size=1 face="serif">WITHHOLD AUTHORITY </FONT></B><BR><FONT size=1 face="serif">to vote for all nominees listed below </FONT><B><FONT size=1 face="WingDings">o</FONT></B></TD>
</TR>
</TABLE>
<P>
<B><I><FONT size=1 face="serif">(INSTRUCTION:  To withhold authority to vote for any individual nominee, strike a line through the nominee&#146;s name in the list below.)</FONT></I></B>
<BR><B><FONT size=1 face="serif">Terry K. Glenn, Joe Grills,  Walter Mintz, Robert S. Salomon, Jr., Melvin R. Seiden, Stephen B. Swensrud and Arthur Zeikel</FONT></B>
</P>

</TABLE>
<TABLE>
<TR>
   <TD valign="top" width="5%"><FONT size=2 face="serif">2.</FONT><BR>&nbsp;&nbsp;</TD>
   <TD valign="top"><FONT size=2 face="serif">Proposal to ratify the selection of Ernst &amp; Young LLP as the independent auditors of the Fund to serve for the current fiscal year.</FONT><BR>   </TD>
</TR>
</TABLE>

</TABLE>
<TABLE>
<TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        <B><FONT size=1 face="serif">FOR </FONT></B><B><FONT size=1 face="WingDings">o</FONT></B></TD>

    <TD><B><FONT size=1 face="serif">AGAINST </FONT></B><B><FONT size=1 face="WingDings">o</FONT></B></TD>

    <TD><B><FONT size=1 face="serif">ABSTAIN </FONT></B><B><FONT size=1 face="WingDings">o</FONT></B></TD>
</TR>
</TABLE>

</TABLE>
<TABLE>
<TR>
   <TD valign="top" width="5%"><FONT size=2 face="serif">3.</FONT><BR>&nbsp;&nbsp;</TD>
   <TD valign="top"><FONT size=2 face="serif">In the discretion of such proxies, upon such other business as may properly come before the meeting or any adjournment thereof.</FONT><BR>   </TD>
</TR>
</TABLE>

<BLOCKQUOTE>
  <BLOCKQUOTE>
  <BLOCKQUOTE>
  <BLOCKQUOTE>
  <BLOCKQUOTE>
  <BLOCKQUOTE>
    <P>
      <FONT size=1 face="serif">Please sign exactly as name appears hereon.  When stock is held by joint tenants, both should sign.
When signing as attorney or as executor, administrator, trustee or guardian,
please give full title as such. If a corporation, please sign in full corporate name by
president or other authorized officer. If a partnership, please sign in partnership name by authorized person.
</FONT>
    </P>

<P>
<FONT size=1 face="serif">Dated:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
, 2000</FONT>
</P>
<P>
<HR>
<FONT size=1 face="serif">Signature</FONT>
</P>

<P>
<HR>
<FONT size=1 face="serif">Signature, if held jointly</FONT>
</P>
  </BLOCKQUOTE>
  </BLOCKQUOTE>
  </BLOCKQUOTE>
  </BLOCKQUOTE>
  </BLOCKQUOTE>
</BLOCKQUOTE>

<P>
<B><FONT size=1 face="serif">Sign, Date and Return the Proxy Card Promptly Using the Enclosed Envelope.</FONT></B>
</P>
<P align="center">
<FONT size=2 face="serif">4</FONT>
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