BLACKROCK INSURED MUNICIPAL TERM TRUST INC, N-30D, 1998-02-27

BLACKROCK INSURED MUNICIPAL TERM TRUST INC
N-30D, 1998-02-27

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- --------------------------------------------------------------------------------
THE BLACKROCK INSURED MUNICIPAL TERM TRUST INC.
ANNUAL REPORT TO SHAREHOLDERS
REPORT OF INVESTMENT ADVISER
- --------------------------------------------------------------------------------

January 31, 1998

Dear Trust Shareholder:

U.S. fixed income investors have been rewarded with solid total returns
over the past twelve months ended December 31, 1997, as low inflation despite
strong economic growth drove Treasury yields lower.

The economy has shown some signs of slowing, which BlackRock expects may
persist as recessions in the emerging Asian economies and Japan will moderate
U.S. growth. We do not see immediate signs of inflationary pressure nor do we
anticipate an imminent change in monetary policy by the Federal Reserve. Our
longer-term outlook for the bond market remains optimistic, based on the
fundamentally favorable backdrop of slower economic growth, low inflation and
declining Treasury borrowing.

There are exciting developments occurring at BlackRock that we would like
to share with you. As you may know, BlackRock was acquired by PNC Bank, N.A. in
1995. In early 1998 the five investment management firms that comprise the PNC
Asset Management Group were consolidated under the BlackRock umbrella. This will
result in BlackRock Inc. becoming a $100 billion money management firm ranking
it among the 25 largest in the country. We look forward to using our global
investment management expertise to present exciting investment opportunities to
closed-end fund shareholders in the future.

This report contains detailed market and portfolio strategy commentary by
your Trust's managers in addition to the Trust's audited financial statements
and a detailed portfolio listing. We thank you for your continued investment in
the Trust and wish you a successful new year.

Sincerely,

/s/ /s/
- --------------------- ------------------------
Laurence D. Fink Ralph L. Schlosstein
Chairman President

<PAGE>

January 31, 1998

Dear Shareholder:

We are pleased to present the annual report for The BlackRock Insured
Municipal Term Trust Inc. ("the Trust") for the year ended December 31, 1997. We
would like to take this opportunity to review the Trust's stock price and net
asset value (NAV) performance, summarize developments in the fixed income
markets and discuss recent portfolio management activity.

The Trust is a diversified, actively managed closed-end bond fund whose
shares are traded on the New York Stock Exchange under the symbol "BMT". The
Trust's investment objective is to manage a portfolio of municipal debt
securities that will return $10 per share (an amount equal to the Trust's
initial public offering price) to investors on or about December 31, 2010, while
providing high current income exempt from regular federal income tax. The Trust
seeks to achieve this objective by investing in high credit quality ("AAA" or
insured to "AAA") tax-exempt general obligation and revenue bonds issued by
city, county and state municipalities throughout the United States.

The table below summarizes the changes in the Trust's stock price and net
asset value over the past year:

--------------------------------------------------
12/31/97 12/31/96 CHANGE HIGH LOW
- --------------------------------------------------------------------------------
STOCK PRICE $11.00 $10.125 8.64% $11.00 $10.00
- --------------------------------------------------------------------------------
NET ASSET VALUE (NAV) $11.20 $10.87 3.04% $11.20 $10.63
- --------------------------------------------------------------------------------

THE FIXED INCOME MARKETS

The U.S. economy exhibited strong growth and low inflation during 1997,
pushing bond yields below 6% for the first time since early 1996. Fueled by
increased consumer spending and low unemployment, growth was robust. The primary
inflation indicators, consumer and producer prices, remained dormant throughout
the period and unemployment rate remained low. After increasing the Fed Funds
Rate to 5.50% in March, the Federal Reserve left the rate unchanged for the
remainder of the year, as the combination of slowing domestic growth and the
economic turmoil in Asia threatened to exert deflationary pressures on the U.S.
economy.

The positive momentum has continued into the early days of 1998 based, in
part, on the possibility of early elimination of the budget deficit and on
comments by Fed Chairman Greenspan that deflation was an issue. New home sales
recently hit a new cyclical peak, the employment picture remains very strong and
consumer confidence and spending remain high. Despite the strong growth, current
and future inflation both appear to be controlled.

Municipal bonds, as measured by the LEHMAN MUNICIPAL BOND INDEX, posted a
9.20% total return for the year, versus 9.68% for the taxable bond market
(measured by the LEHMAN AGGREGATE INDEX). The substantial decline in municipal
interest rates resulted in 1997 being the third largest issuance year on record
(a 19% increase over 1996), which negatively impacted municipal bond
performance. After keeping pace with the Treasury market rally in the second
quarter, municipals cheapened in relation to Treasuries during the latter half
of the year due to reduced participation by retail investors at lower interest
rate levels and increased supply.

Looking forward, we expect issuance of municipal securities in 1998 to be
similar to 1997 levels, with an increase in new supply being offset by a
decrease in refunding supply. BlackRock remains focused on high quality
municipal securities, because the yield advantage of purchasing lower rated
securities remains marginal. The strong state of the economy is

<PAGE>

expected to continue, providing strong fundamentals for municipal issuers. We
expect to see more discussions about tax reform towards the end of the first
quarter of 1998, which may create buying opportunities.

THE TRUST'S PORTFOLIO AND INVESTMENT STRATEGY

The Trust's portfolio is actively managed to diversify exposure across
various sectors, issuers, revenue sources and security types. BlackRock's
investment strategy emphasizes a relative value approach, which allows the Trust
to capitalize upon changing market conditions by rotating municipal sectors,
credits and coupons. Portfolio trading activity was very low during 1997, as a
majority of the bonds in the portfolio are trading at prices which, if sold,
would result in a taxable capital gain. Additionally, as these bonds were
purchased in higher interest rate environments. Were they to be sold, the Trust
would be forced to reinvest the proceeds in lower yielding securities. Both of
these factors led us to decide that the most prudent investment strategy for
1997 was to maintain the current portfolio structure.

Additionally, the Trust employs leverage to enhance its income by
borrowing at short-term municipal rates and investing the proceeds in longer
maturity issues that have higher yields. The degree to which the Trust can
benefit from its use of leverage may affect its ability to pay high monthly
income. The Trust has experienced favorable short-term municipal rates over the
past year. The Federal Reserve's decision to raise the Fed funds target rate in
March 1997 did not significantly impact the short end of the municipal yield
curve, allowing the rates the Trust pays to preferred shareholders (the Trust's
leverage cost) to remain affordable.

The following charts compare the Trust's current and December 31, 1996
asset composition:

------------------------------------------------------------------------
THE BLACKROCK INSURED MUNICIPAL TERM TRUST INC.
------------------------------------------------------------------------
SECTOR DECEMBER 31, 1997 DECEMBER 31, 1996
------------------------------------------------------------------------
City, County and State 28% 29%
------------------------------------------------------------------------
Hospital 17% 17%
------------------------------------------------------------------------
Water & Sewer 15% 12%
------------------------------------------------------------------------
Utility/Power 11% 11%
------------------------------------------------------------------------
Tax Revenue 8% 9%
------------------------------------------------------------------------
Lease Revenue 6% 8%
------------------------------------------------------------------------
Education 5% 4%
------------------------------------------------------------------------
Miscellaneous Revenue 4% 5%
------------------------------------------------------------------------
Housing 3% 3%
------------------------------------------------------------------------
Transportation 3% 2%
------------------------------------------------------------------------

<PAGE>

We appreciate your continued confidence and look forward to managing The
BlackRock Insured Municipal Term Trust Inc. in the coming years to realize its
investment objectives. Please feel free to contact the mutual fund specialists
at BlackRock's marketing center at (800) 227-7BFM (7236) if you have any
questions that weren't answered in this report.
Additionally, you can reach us via e-mail at [email protected].

Sincerely yours,

/s/ /s/
- ------------------------ -------------------------
Robert S. Kapito Kevin Klingert
Vice Chairman and Portfolio Manager Managing Director and Portfolio Manager
BlackRock Financial Management, Inc. BlackRock Financial Management, Inc.

------------------------------------------------------------------------------
THE BLACKROCK INSURED MUNICIPAL TERM TRUST INC.
------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BMT
------------------------------------------------------------------------------
Initial Offering Date: February 20, 1992
------------------------------------------------------------------------------
Closing Stock Price as of 12/31/97: $11.00
------------------------------------------------------------------------------
Net Asset Value as of 12/31/97: $11.20
------------------------------------------------------------------------------
Yield on Closing Stock Price as of 12/31/97 ($11.00)1: 5.68%
------------------------------------------------------------------------------
Current Monthly Distribution per Common Share2: $ 0.05208
------------------------------------------------------------------------------
Current Annualized Distribution per Common Share2: $ 0.62496
------------------------------------------------------------------------------

- ----------
1 Yield on Closing Stock Price is calculated by dividing the current
annualized distribution per share by the closing stock price per share.
2 Dividend is not constant and is subject to change.

<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK INSURED MUNICIPAL TERM TRUST INC.
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>

OPTION
PRINCIPAL CALL
RATING* AMOUNT PROVISIONS** VALUE
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LONG-TERM INVESTMENTS--142.6%
ALABAMA--1.1%
AAA $ 3,000 Mobile Cnty., G.O., 6.70%, 2/01/00+, MBIA .......................... No Opt. Call $ 3,212,640
----------

ARIZONA--1.6%
AAA 4,180 University of Arizona Med. Ctr. Hosp. Rev.,
6.25%, 7/01/10, MBIA ............................................ 7/02 at 102 4,535,593
----------

CALIFORNIA--10.4%
California St., G.0., FGIC,
AAA 4,355 6.80%, 11/01/04+ ................................................ No Opt. Call 5,071,485
AAA 145 6.80%, 11/01/10 ................................................. 11/04 at 102 166,808
AAA 3,400 California St. Pub. Wks., 6.60%, 12/01/02+, AMBAC .................. No Opt. Call 3,821,532
AAA 6,100 Contra Costa Tran. Auth., 6.50%, 3/01/09, FGIC ..................... No Opt. Call 6,832,427
AAA 3,500 Eastern Mun. Wtr. Dist., 6.50%, 7/01/09, FGIC ...................... 7/01 at 101 3,765,195
AAA 3,065 Los Angeles Cnty. Leasing Corp., 6.05%, 12/01/10, AMBAC ............ No Opt. Call 3,473,840
AAA 3,000 San Francisco Bay Area Rapid Trans., 6.75%, 7/01/09, AMBAC ......... 7/00 at 102 3,232,890
AAA 3,500 Sonoma Cnty. Correct. Fac., C.O.P., 6.10%, 11/15/12, AMBAC ......... 11/02 at 102 3,793,720
----------
30,157,897
----------
DISTRICT OF COLUMBIA--1.3%
AAA 3,500 District of Columbia, G.O., Ser. A, 6.875%, 6/01/00+, MBIA ......... No Opt. Call 3,779,195
----------

FLORIDA--9.2%
AAA 10,750 Broward Cnty. Sch. Bd., 6.50%, 7/01/02+, AMBAC ..................... No Opt. Call 11,929,705
AAA 12,195 Jacksonville Excise Tax Rev., 6.50%, 10/01/10, AMBAC ............... 10/02 at 102 13,522,182
AAA 1,000 Volusia Cnty. Edl. Fac., 6.50%, 10/15/10, CONNIE LEE ............... 10/02 at 102 1,102,640
----------
26,554,527
----------
GEORGIA--2.6%
AAA 5,000 Henry Cnty. Hosp. Auth. Rev., 6.375%, 7/01/09, FGIC ................ 7/02 at 102 5,471,850
AAA 2,000 Macon-Bibb Cnty. Hosp. Auth. Rev., Georgia Med. Ctr.,
6.75%, 8/01/99+, FGIC ........................................... No Opt. Call 2,121,940
----------
7,593,790
----------
ILLINOIS--13.3%
AAA 3,715 Chicago, Res. Mtg. Rev., Zero Coupon, 10/01/09, MBIA ............... No Opt. Call 1,651,169
Cook Cnty., G.O., MBIA,
AAA 7,000 6.50%, 11/15/02+ ................................................ No Opt. Call 7,798,420
AAA 4,500 7.00%, 11/01/00+ ................................................ No Opt. Call 4,930,380
AAA 5,000 Cook Cnty., Community Schs., 6.50%, 1/01/02+, FGIC ................. No Opt. Call 5,408,450
AAA 5,000 Illinois Edl. Fac. Auth. Rev., 4.125%++, 7/01/13, FGIC 7/03 at 102 5,282,500
Illinois Hlth. Fac. Auth. Rev., FGIC,
AAA 3,000 Ser. A, 6.75%, 1/01/10 .......................................... 1/00 at 102 3,201,900
AAA 1,750 Ser. C, 6.75%, 1/01/10 .......................................... 1/00 at 102 1,867,775
AAA 7,980 Kendell Kane & Will Cnty. Sch. Dist., 6.25%, 9/01/11, FGIC ......... 9/01 at 100 8,478,112
----------
38,618,706
----------
INDIANA--3.1%
AAA 1,340 Columbus Sch. Bd., 6.625%, 7/01/11, AMBAC .......................... 7/02 at 102 1,472,472
AAA 3,750 Indiana St. Edl. Fac. Auth. Rev., 6.60%, 1/01/11, MBIA ............. 1/02 at 102 4,088,587
AAA 3,000 Monroe Cnty. Hosp. Auth. Rev., Bloomington Hosp., 6.65%, 5/01/02+,
MBIA ............................................................ No Opt.Call 3,306,180
----------
8,867,239
----------
</TABLE>

See Notes to Financial Statements.

<PAGE>

- ----------------------------------------------------------------------------------------------------------------------
OPTION
PRINCIPAL CALL
RATING* AMOUNT PROVISIONS** VALUE
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>

LOUISIANA--6.5%
Louisiana St., G.O., Ser. A, AMBAC,
AAA $ 4,000 6.50%, 5/01/09 .................................................. 5/02 at 102 $ 4,383,160
AAA 10,385 6.50%, 5/01/10 .................................................. 5/02 at 102 11,358,178
AAA 2,905 New Orleans Pub. Impt., G.O., 6.60%, 9/01/02+, FGIC ................ No Opt. Call 3,190,242
----------
18,931,580
----------

MASSACHUSETTS--16.2%
AAA 2,100 Boston, G.O., Ser. A, 6.50%, 7/01/12, AMBAC ........................ 7/02 at 102 2,302,461
Massachusetts St. Hlth. &Edl. Fac. Auth. Rev.,
AAA 2,000 6.50%, 7/01/10, FGIC ............................................ 7/02 at 102 2,207,440
AAA 5,000 6.50%, 7/01/10, MBIA ............................................ 7/02 at 102 5,527,250
AAA 3,250 7.25%, 7/01/10, MBIA ............................................ 7/00 at 102 3,550,787
Massachusetts St. Hsg. Fin. Agcy., FNMA Collateral,
AAA 5,000 Ser. H, 6.75%, 11/15/12 ......................................... 11/03 at 102 5,426,950
AAA 5,500 Residential Dev., Ser. A, 6.875%, 11/15/11 ...................... 5/02 at 102 5,969,315
AAA 600 Residential Dev., Ser. C, 6.875%, 11/15/11 ...................... 5/02 at 102 653,670
Massachusetts St., G.O.,
AAA 1,220 6.75%, 8/01/09, AMBAC ........................................... 8/01 at 102 1,345,386
AAA 7,865 Ser. C, 6.70%, 11/01/04+, FGIC .................................. No Opt. Call 9,028,627
AAA 1,620 Ser. D, 6.00%, 7/01/01+, MBIA ................................... No Opt. Call 1,719,031
AAA 730 Ser. D, 6.00%, 7/01/12, MBIA .................................... 7/01 at 100 762,324
AAA 7,630 Massachusetts St. Wtr. Res., Ser. B, 6.25%, 11/01/10, MBIA ......... 11/02 at 102 8,378,579
----------
46,871,820
----------
MICHIGAN--3.9%
AAA 2,375 Chippewa Valley, Sch. Bldg. & Site Rev., 6.375%, 5/01/01+, FGIC .... No Opt. Call 2,575,901
Michigan Mun. Bd. Auth. Rev.,
AAA 900 Ser. A, 6.50%, 11/01/12, MBIA ................................... 11/02 at 102 991,773
AAA 2,040 6.45%, 11/01/07, AMBAC .......................................... 11/04 at 102 2,316,869
AAA 2,050 6.65%, 11/01/09, AMBAC .......................................... 11/04 at 102 2,326,094
AAA 3,000 Western Township Util. Auth. Swr. Dist. Sys. Rev.,
6.50%, 1/01/10, FSA ............................................. 1/02 at 100 3,226,860
----------
11,437,497
----------
MISSISSIPPI--0.7%
AAA 1,800 Harrison Cnty. Waste Wtr. Mgmt., 6.75%, 2/01/11, FGIC .............. 2/01 at 102 1,956,510
----------

NEVADA--7.1%
AAA 4,000 Clark Cnty., G.O., 6.50%, 6/01/02+, AMBAC .......................... No Opt. Call 4,432,720
AAA 5,215 Clark Cnty. Arpt., 6.25%, 6/01/01+, FGIC ........................... No Opt. Call 5,567,482
Clark Cnty. Sch. Dist.,
AAA 4,185 6.75%, 12/15/04+, FGIC .......................................... No Opt. Call 4,825,723
AAA 5,175 7.00%, 6/01/01+, MBIA ........................................... No Opt. Call 5,691,931
----------
20,517,856
----------
NEW JERSEY--0.7%
AAA 2,000 Hudson Cnty. Correct. Fac., C.O.P., 6.50%, 12/01/11, MBIA .......... 6/02 at 101.5 2,189,440
----------

NEW YORK--11.0%
New York City, G.O., Ser. B, MBIA,
AAA 4,445 6.95%, 8/15/12 .................................................. 8/04 at 101 5,141,309
AAA 55 6.95%, 8/15/04+ ................................................. No Opt.Call 63,719
New York St. Env. Fac. Corp. Poll. Ctr. Rev.,
AAA 6,155 6.70%, 5/15/09 .................................................. 11/04 at 102 7,040,828
AAA 4,965 6.80%, 5/15/10 .................................................. 11/04 at 102 5,692,670
New York St. Medicare Fac., AMBAC,
AAA 9,715 6.60%, 8/15/09 .................................................. 2/05 at 102 11,022,250
AAA 2,695 6.625%, 2/15/10 ................................................. 2/05 at 102 3,052,896
----------
32,013,672
----------

</TABLE>

See Notes to Financial Statements.

<PAGE>

- ---------------------------------------------------------------------------------------------------------------------------
OPTION
PRINCIPAL CALL
RATING* AMOUNT PROVISIONS** VALUE
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OHIO--6.0%
Cleveland Wtrwks. Rev., First Mtg., Ser. F, AMBAC,
AAA $ 6,495 6.50%, 1/01/11 .................................................. 1/02 at 102 $ 7,107,868
AAA 5,505 6.50%, 1/01/02+ ................................................. No Opt. Call 6,058,528
AAA 3,900 Lucas Cnty. Hosp. Impt. Rev., St. Vincent Med. Ctr.,
6.50%, 8/15/02+, MBIA ........................................... No Opt. Call 4,281,498
----------
17,447,894
----------

OKLAHOMA--2.1%
AAA 5,725 Oklahoma City Wtr. Util. Tr. Wtr. & Sewer Rev., Ser. B,
6.375%, 7/01/12, MBIA ........................................... 7/02 at 100 6,163,879
----------

PENNSYLVANIA--6.1%
AAA 5,000 Dauphin Cnty. Gen. Auth. Rev., 6.25%, 7/01/08, MBIA ................ 7/02 at 102 5,446,700
AAA 2,100 Philadelphia Wtr. &Waste Rev., Ser. A,
5.625%, 6/15/08, AMBAC .......................................... No Opt. Call 2,297,925
AAA 6,005 Pittsburgh, G.O., Ser. D, 6.00%, 9/01/10, AMBAC .................... 9/02 at 102 6,500,713
AAA 3,000 Pittsburgh Wtr. & Swr., 6.75%, 9/01/01+, FGIC ...................... No Opt. Call 3,313,260
----------
17,558,598
----------
RHODE ISLAND--4.6%
AAA 2,390 Rhode Island Clean Wtr. Protn. Fin. Agcy. Wtr. Poll. Ctl.
Rev. Revolving Fd.
Pooled Ln., Issue A, 6.70%, 10/01/10, MBIA ...................... 10/02 at 102 2,651,872
AAA 10,000 Rhode Island St. Pub. Bldgs. Auth., St. Pub. Prjs. Rev.,
Ser. A, 6.75%, 2/01/00+, AMBAC .................................. No Opt. Call 10,718,600
----------
13,370,472
----------
SOUTH CAROLINA--8.6%
Piedmont Mun. Pwr. Agcy. Elec. Rev.,
AAA 14,925 6.30%, 1/01/11, MBIA ............................................ 1/03 at 102 16,291,085
AAA 7,900 6.50%, 1/01/11, FGIC ............................................ 1/01 at 102 8,507,352
----------
24,798,437
----------
TEXAS--15.6%
Austin Util. Sys. Rev. Comb., Ser A., FGIC,
AAA 7,475 6.00%, 5/15/00+ ................................................. No Opt. Call 7,802,629
AAA 1,055 6.00%, 5/15/10 .................................................. 5/00 at 100 1,095,702
AAA 1,580 Dallas Cnty. Road Imp., G.O., 5.625%, 8/15/10 ...................... 8/01 at 100 1,631,097
AAA 2,500 Dallas Ft. Worth Regl. Arpt. Rev., Ser. A, 7.375%, 11/01/10, FGIC .. 5/04 at 102 2,939,550
AAA 8,000 El Paso Impt. Auth. Rev., G.O., Ser. A, 6.375%, 8/15/10, FGIC ...... No Opt. Call 8,604,080
Harris Cnty., FGIC,
AAA 2,585 Toll Road, Ser. B, Zero Coupon, 8/15/08 ......................... No Opt. Call 1,577,574
AAA 6,310 Toll Road Sr. Lien, Ser. A, 6.50%, 8/15/02+ ..................... No Opt. Call 7,002,081
AAA 4,775 Toll Road Sr. Lien, Ser. A, 6.50%, 8/15/11 ...................... 8/02 at 102 5,258,946
AAA 10,440 Houston Wtr. & Swr. Sys., Ser. C, Zero Coupon, 12/01/10, AMBAC ..... No Opt. Call 5,584,252
AAA 1,840 North Texas Mun. Wtr. Dist., 6.50%, 6/01/09, MBIA .................. 6/03 at 100 2,020,688
AAA 1,500 Texas Mun. Pwr. Agcy., Ser. A, 6.75%, 9/01/12, AMBAC ............... 9/01 at 102 1,648,575
----------
45,165,174
----------
UTAH--1.1%
AAA 1,450 Salt Lake City Mun. Bldg. Lease, 6.15%, 10/01/10, MBIA ............. 10/04 at 101 1,577,977
AAA 3,175 Salt Lake City Wtr. Conservancy, Zero Coupon, 10/01/10, AMBAC ...... No Opt. Call 1,712,024
----------
3,290,001
----------
VIRGINIA--3.6%
Peninsula Port. Auth. Hlth. Sys., MBIA,
AAA 6,000 Riverside Hlth. Sys. Prj. A, 6.625%, 7/01/10 .................... 7/02 at 102 6,639,660
AAA 3,380 Riverside Hlth. Sys. Prj. B, 6.625%, 7/01/10 ....................... 7/02 at 102 3,740,342
----------
10,380,002
----------
</TABLE>

See Notes to Financial Statements.

<PAGE>

WASHINGTON--5.5%
AAA $ 4,650 Port of Seattle Rev., 6.60%, 8/01/10, MBIA ....................... 8/02 at 102 $ 5,172,288
Washington St. Pub. Pwr. Supply Sys. Rev.,
AAA 12,905 Zero Coupon, 7/01/10, MBIA .................................... No Opt. Call 7,000,575
AAA 3,500 Nuclear Prj. No. 1, Ser. A, 7.00%, 7/01/00+, FGIC ............. No Opt. Call 3,805,165
-----------
15,978,028
-----------

WISCONSIN--0.7%
AAA 2,000 Wisconsin St. Hlth. & Edl. Facs. Auth. Rev., Wausau Hosp.
Inc., Ser. A, 6.625%, 8/15/09, AMBAC .......................... 2/01 at 102 2,168,260
-----------
Total long-term investments (cost $371,481,916) .................. 413,558,707

SHORT-TERM INVESTMENT***--0.1%
VMIG1 100 Uinta Cnty. Wyoming Poll.Control Rev., 4.90%, FRDD, 1/02/9
(cost $100,000) ............................................... 100,000
-----------

TOTAL INVESTMENTS--142.7% (cost $371,581,916) .................... 413,658,707

Other assets in excess of liabilities--2.1% ...................... 6,302,984
Liquidation value of preferred stock--(44.8)% .................... (130,000,000)
-----------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ............... $289,961,691
============
</TABLE>

+ This bond is pre-refunded. See glossary for definition.
++ This bond contains embedded caps. See glossary for definition.
* Rating: using the higher of Standard & Poor's, Moody's or Fitch's rating.
** Option call provisions: date (month/year) and price of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
*** For purposes of amortized cost valuation, the maturity date of this
instrument is considered to be the later of the next date on which the
security can be redeemed at par or the next date on which the interest
rate is adjusted.

-------------------------------------------------------------------------
KEY TO ABBREVIATIONS
AMBAC-- American Municipal Bond Assurance Corporation
CONNIE LEE-- College Construction Loan Insurance Association
C.O.P.-- Certificate of Participation
FGIC-- Financial Guaranty Insurance Company
FNMACollateral-- Federal National Mortgage Association
FRDD-- Floating Rate Daily Demand
FSA-- Financial Security Assurance, Inc.
G.O.-- General Obligation Bond
MBIA-- Municipal Bond Insurance Association
-------------------------------------------------------------------------

See Notes to Financial Statements

<PAGE>

- --------------------------------------------------------------------------------

THE BLACKROCK INSURED
MUNICIPAL TERM TRUST INC.
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1997
- --------------------------------------------------------------------------------

ASSETS
Investments, at value (cost $371,581,916)
(Note 1) ..................................... $413,658,707
Interest receivable ............................ 7,557,256
Prepaid assets ................................. 28,051
------------
421,244,014
------------

LIABILITIES
Bank overdraft ................................. 930,436
Advisory fee payable (Note 2) .................. 124,754
Administration fee payable (Note 2) ............ 35,644
Dividends payable--preferred stock ............. 30,947
Other accrued expenses ......................... 160,542
------------
1,282,323
------------
NET INVESTMENT ASSETS .......................... $419,961,691
============
Net assets were comprised of:
Common stock:
Par value (Note 4) ......................... $ 258,856
Paid-in capital in excess of par ........... 239,833,688
Preferred stock (Note 4) ..................... 130,000,000
------------
370,092,544
Undistributed net investment income .......... 8,161,089
Accumulated net realized loss ................ (368,733)
Net unrealized appreciation .................. 42,076,791
------------
Net investment assets, December 31, 1997 ..... $419,961,691
============
Net assets applicable to common shareholders . $289,961,691
============
Net asset value per common share:
($289,961,691 / 25,885,639 shares of
common stock issued and outstanding) ......... $11.20
======

- --------------------------------------------------------------------------------
THE BLACKROCK INSURED
MUNICIPAL TERM TRUST INC.
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1997
- --------------------------------------------------------------------------------

NET INVESTMENT INCOME
Income
Interest and discount earned ................. $24,394,746
-----------
Expenses
Investment advisory .......................... 1,451,253
Administration ............................... 414,643
Auction agent ................................ 325,000
Custodian .................................... 97,000
Directors .................................... 75,000
Reports to shareholders ...................... 55,000
Audit ........................................ 40,000
Transfer agent ............................... 29,000
Legal ........................................ 18,000
Miscellaneous ................................ 164,890
-----------
Total expenses ............................... 2,669,786
-----------

Net investment income .......................... 21,724,960
-----------

REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (NOTE 3)
Net realized loss on investments ............... (45,924)
Net change in unrealized appreciation on
investments .................................. 7,582,696
-----------
Net gain on investments ........................ 7,536,772
-----------
NET INCREASE IN NET INVESTMENT
ASSETS RESULTING FROM OPERATIONS ............. $29,261,732
===========

See Notes to Financial Statements.

<PAGE>

- -------------------------------------------------------------------------------
THE BLACKROCK INSURED MUNICIPAL TERM TRUST INC.
STATEMENTS OF CHANGES IN NET INVESTMENT ASSETS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
--------------------------
1997 1996
----------- ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET INVESTMENT ASSETS
Operations:
Net investment income ............................................................. $ 21,724,960 $ 21,558,425
Net realized gain (loss) on investments ........................................... (45,924) 201,117
Net change in unrealized appreciation (depreciation) on investments ............... 7,582,696 (4,792,998)
------------- -------------
Net increase in net investment assets resulting from operations ................... 29,261,732 16,966,544
------------- -------------
Dividends:
To preferred shareholders from net investment income .............................. (4,592,916) (4,545,206)
To common shareholders from net investment income ................................. (16,177,257) (16,177,316)
------------- -------------
(20,770,173) (20,722,522)
------------- -------------
Total increase (decrease) ....................................................... 8,491,559 (3,755,978)
------------- -------------

NET INVESTMENT ASSETS
Beginning of year ................................................................... 411,470,132 415,226,110
------------- -------------
End of year ......................................................................... $ 419,961,691 $ 411,470,132
============= =============
</TABLE>

See Notes to Financial Statements

<PAGE>

- -------------------------------------------------------------------------------
THE BLACKROCK INSURED MUNICIPAL TERM TRUST INC.
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>

YEAR ENDED DECEMBER 31,
---------------------------------------------------------------
1997 1996 1995 1994 1993
------- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C>

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $10.87 $ 11.02 $ 9.73 $ 11.18 $ 9.93
------ -------- -------- -------- --------
Net investment income .84 .83 .84 .82 .83
Net realized and unrealized gain (loss) on
investments .29 (.18) 1.27 (1.48) 1.18
------ -------- -------- -------- --------
Net increase (decrease) from investment
operations 1.13 .65 2.11 (.66 )2.01
------ -------- -------- -------- --------
Dividends from net investment income to:
Preferred shareholders (.18) (.18) (.20) (.14) (.12)
Common shareholders (.62) (.62) (.62) (.62) (.63)
Distributions from net realized gain on
investments to: Preferred shareholders -- -- -- (.01) (.00)**
Common shareholders -- -- -- (.02) (.01)
------ -------- -------- -------- --------

Total dividends and distributions (.80) (.80) (.82) (.79) (.76)
====== ======== ======== ======== ========
Net asset value, end of period* $11.20 $ 10.87 $ 11.02 $ 9.73 $ 11.18
------ --------- -------- -------- --------

------ --------- -------- -------- --------
Market value, end of period* $11.00 $ 10.125 $ 10.00 $ 8.50 $ 10.50
------ -------- -------- -------- --------

------ -------- -------- -------- --------
TOTAL INVESTMENT RETURN+ 15.22% 7.59% 25.31% (13.38%) 12.99%
RATIOSTOAVERAGENETASSETS
OF COMMON SHAREHOLDERS:++
Expenses .94% .97% .96% 1.04% .96%
Net investment income before preferred
stock dividends 7.66% 7.66% 7.97% 7.99% 7.75%
Preferred stock dividends 1.62% 1.61% 1.87% 1.44% 1.15%
Net investment income available to
common shareholders 6.04% 6.05% 6.10% 6.55% 6.60%
SUPPLEMENTAL DATA:
Average net assets of common shareholders
(in thousands) $283,531 $281,521 $272,868 $265,851 $275,162
Portfolio turnover 1% 1% 1% 31% 1%
Net assets of common shareholders,
end of period (in thousands) $289,962 $281,470 $285,226 $251,856 $289,449
Asset coverage per share of preferred
stock, end of period# $ 80,762 $ 79,129 $ 79,851 $146,868 $161,327
Preferred stock outstanding (in thousands) $130,000 $130,000 $130,000 $130,000 $130,000

</TABLE>

- ----------
* Net asset value and market value are published in THE WALL STREET JOURNAL
each Monday.
** Actual amount paid to preferred shareholders was $0.0013 per common share.
# A stock split occurred on July 24, 1995 (Note 4).
+ Total investment return is calculated assuming a purchase of common stock
at the current market price on the first day and a sale at the current
market price on the last day of each period reported. Dividends and
distributions, if any, are assumed, for purposes of this calculation, to be
reinvested at prices obtained under the Trust's dividend reinvestment plan.
Total investment returns do not reflect brokerage commissions.
++ Ratios calculated on the basis of income and expenses applicable to both
the common and preferred shares, and preferred stock dividends, relative to
the average net assets of common shareholders.

The information above represents the audited operating performance data for a
share of common stock outstanding, total investment return, ratios to average
net assets and other supplemental data for each of the years indicated. This
information has been determined based upon financial information provided in the
financial statements and market value data for the Trust's common shares.

See Notes to Financial Statements.

<PAGE>
- --------------------------------------------------------------------------------

THE BLACKROCK INSURED MUNICIPAL TERM TRUST INC.
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------

NOTE 1. ACCOUNTING

The BlackRock Insured Municipal Term Trust Inc. (the "Trust"), a Maryland
Corporation is a diversified, closed-end management investment company. The
Trust's investment objective is to manage a portfolio of investment grade fixed
income securities that will return $10 per share to investors on or about
December 31, 2010 while providing current income exempt from regular Federal
income tax. The ability of issuers of debt securities held by the Trust to meet
their obligations may be affected by economic developments in a specific state,
industry or region. No assurance can be given that the Trust's investment
objective will be achieved.

The following is a summary of significant accounting policies followed by the
Trust:

SECURITIES VALUATION: Municipal securities (including commitments to purchase
such securities on a "when-issued" basis) are valued on the basis of prices
provided by a pricing service which uses information with respect to
transactions in bonds, quotations from bond dealers, market transactions in
comparable securities and various relationships between securities in
determining values. Any securities or other assets for which such current market
quotations are not readily available are valued at fair value as determined in
good faith under procedures established by and under the general supervision and
responsibility of the Trust's Board of Directors.

Short-term securities which mature in 60 days or less are valued at amortized
cost, if their term to maturity from date of purchase is 60 days or less.
Short-term securities with a term to maturity greater than 60 days from the date
of purchase are valued at current market quotations until maturity.

SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on the trade date. Realized gains and losses are calculated on the
identified cost basis. Interest income is recorded on the accrual basis and the
Trust amortizes premium and accretes original issue discount on securities
purchased using the interest method.

FEDERAL INCOME TAXES: It is the Trust's intention to continue to meet the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute sufficient net income to shareholders. For this
reason and because substantially all of the Trust's gross income consists of
tax-exempt interest, no federal tax provision is required.

DIVIDENDS AND DISTRIBUTIONS: The Trust declares and pays dividends and
distributions to common shareholders monthly from net investment income. Net
capital gains, if any, in excess of loss carryforwards may be distributed
annually. Dividends and distributions are recorded on the ex-dividend date.
Dividends and distributions to preferred shareholders are accrued and determined
as described in Note 4.

ESTIMATES: The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.

NOTE 2. AGREEMENTS

The Trust has an Investment Advisory Agreement with BlackRock Financial
Management Inc. (the "Adviser"), a wholly-owned corporate subsidiary of PNC
Asset Management Group, Inc., the holding company for PNC's asset management
businesses and an Administration Agreement with Mitchell Hutchins Asset
Management Inc. (the "Administrator"), a wholly-owned subsidiary of Paine-Webber
Incorporated.

The investment advisory fee paid to the Adviser is computed weekly and
payable monthly at an annual rate of 0.35% of the Trust's average weekly net
investment assets. The administration fee paid to the Administrator is also
computed weekly and payable monthly at an annual rate of 0.10% of the Trust's
average weekly net investment assets.

Pursuant to the agreements, the Adviser provides continuous supervision of
the investment portfolio and pays the compensation of officers of the Trust who
are affiliated persons of the Adviser. The Administrator pays occupancy and
certain clerical and accounting costs of the Trust. The Trust bears all other
costs and expenses.

NOTE 3. PORTFOLIO SECURITIES

Purchases and sales of investment securities, other than short-term investments,
for the year ended December 31, 1997 aggregated $10,011,422 and $2,361,240,
respectively.

<PAGE>

The federal income tax basis of the Trust's investments at December 31, 1997
was substantially the same as the basis for financial reporting and,
accordingly, gross and net unrealized appreciation for federal income tax
purposes was $42,076,791.

For federal income tax purposes, the Trust had a capital loss carryforward at
December 31, 1997 of $368,733 of which $322,809 will expire in 2003 and $45,924
will expire in 2004. Accordingly, no capital gain distribution is expected to be
paid to shareholders until net gains have been realized in excess of such
amount.

NOTE 4. CAPITAL

There are 200 million shares of $.01 par value common stock authorized. Of the
25,885,639 common shares outstanding at December 31, 1997, the Adviser owned
10,639 shares. As of December 31, 1997, there were 5,200 preferred shares
outstanding as follows: 2,600 shares of Series M-7 and M-28, respectively.

The Trust may classify or reclassify any unissued shares of common stock into
one or more series of preferred stock. On April 27, 1992 the Trust reclassified
2,600 shares of common stock and issued two series of Auction Market Preferred
Stock ("Preferred Stock") as follows: Series M7--1,300 shares and Series
M28--1,300 shares. The Preferred Stock has a liquidation value of $25,000 per
share plus any accumulated but unpaid dividends. On May 16, 1995, shareholders
approved a proposal to split each share of the Trust's Auction Rate Municipal
Preferred Stock into two shares and simultaneously reduce each share's
liquidation preference from $50,000 to $25,000 plus any accumulated but unpaid
dividends. The stock split occurred on July 24, 1995.

Dividends on Series M7 are cumulative at a rate which is reset every 7 days
based on the results of an auction. Dividends on Series M28 are also cumulative
at a rate which is reset every 28 days based on the results of an auction.
Dividend rates ranged from 2.40% to 4.99% for the year ended December 31, 1997.

The Trust may not declare dividends or make other distributions on shares of
common stock or purchase any such shares if, at the time of the declaration,
distribution or purchase, asset coverage with respect to the outstanding
Preferred Stock would be less than 200%.

The Preferred stock is redeemable at the option of the Trust, in whole or in
part, on any dividend payment date at $25,000 per share plus any accumulated or
unpaid dividends whether or not declared. The Preferred Stock is also subject to
mandatory redemption at $25,000 per share plus any accumulated or unpaid
dividends, whether or not declared, if certain requirements relating to the
composition of the assets and liabilities of the Trust as set forth in the
Articles of Incorporation are not satisfied.

The holders of Preferred Stock have voting rights equal to the holders of
common stock (one vote per share) and will vote together with holders of shares
of common stock as a single class. However, holders of Preferred Stock are also
entitled to elect two of the Trust's directors. In addition, the Investment
Company Act of 1940 requires that along with approval by shareholders that might
otherwise be required, the approval of the holders of a majority of any
outstanding preferred shares, voting separately as a class would be required to
(a) adopt any plan of reorganization that would adversely affect the preferred
shares, and (b) take any action requiring a vote of security holders including,
among other things, changes in the Trust's subclassification as a closed-end
investment company or changes in its fundamental investment restrictions.

NOTE 5. DIVIDENDS

Subsequent to December 31, 1997, the Board of Directors of the Trust declared
dividends from undistributed earnings of $0.05208 per common share payable
January 30, 1998 to shareholders of record on January 14, 1998.

For the period January 1, 1998 through January 31, 1998, dividends declared
on preferred shares totalled $344,162 in aggregate for the two outstanding
preferred share series.

<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK INSURED MUNICIPAL TERM TRUST INC.
REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------

The Shareholders and Board of Directors of
The BlackRock Insured Municipal Term Trust Inc.:

We have audited the accompanying statement of assets and liabilities of The
BlackRock Insured Municipal Term Trust Inc., including the portfolio of
investments, as of December 31, 1997, and the related statements of operations
for the year then ended, and of changes in net investment assets for each of the
two years in the period then ended and the financial highlights for each of the
five years in the period then ended. These financial statements and financial
highlights are the responsibility of the Trust's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at December
31, 1997, by correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of The BlackRock
Insured Municipal Term Trust Inc. as of December 31, 1997, and the results of
its operations, the changes in its net investment assets and the financial
highlights for the respective stated periods, in conformity with generally
accepted accounting principles.

/s/
- -------------------------------
Deloitte & Touche, LLP

New York, New York
February 13, 1998

<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK INSURED MUNICIPAL TERM TRUST INC.
TAX INFORMATION
- --------------------------------------------------------------------------------

We are required by the Internal Revenue Code to advise you within 60 days
of the Trust's fiscal year end (December 31, 1997) as to the federally
tax-exempt interest dividends received by you during such fiscal year.
Accordingly, we are advising you that all dividends paid by the Trust during the
fiscal year were federally tax-exempt interest dividends.

- --------------------------------------------------------------------------------
DIVIDEND REINVESTMENT PLAN
- --------------------------------------------------------------------------------

Pursuant to the Trust's Dividend Reinvestment Plan (the "Plan"),
shareholders may elect to have all distributions of dividends and capital gains
automatically reinvested by State Street Bank and Trust Company (the "Plan
Agent") in Trust shares pursuant to the Plan. Shareholders who do not
participate in the Plan will receive all distributions in cash paid by check in
United States dollars mailed directly to the shareholders of record (or if the
shares are held in street or other nominee name, then to the nominee) by the
Custodian, as dividend disbursing agent.

The Plan Agent serves as agent for the shareholders in administering the
Plan. After the Trust declares a dividend or determines to make a capital gain
distribution, the Plan Agent will, as agent for the participants, receive the
cash payment and use it to buy Trust shares in the open market on the New York
Stock Exchange for the participants' accounts.
The Trust will not issue shares under the Plan.

Participants in the Plan may withdraw from the Plan upon written notice to
the Plan Agent and will receive certificates for whole Trust shares and a cash
payment will be made for any fraction of a Trust share.

The Plan Agent's fees for the handling of the reinvestment of dividends
and distributions will be paid by the Trust. However, each participant will pay
a pro rata share of brokerage commissions incurred with respect to the Plan
Agent's open market purchases in connection with the reinvestment of dividends
and distributions. The automatic reinvestment of dividends and distributions
will not relieve participants of any federal, state or local income taxes that
may be payable on such dividends or distributions.

Experience under the Plan may indicate that changes are desirable.
Accordingly, the Trust reserves the right to amend or terminate the Plan as
applied to any dividend or distribution paid subsequent to written notice of the
change sent to all shareholders of the Trust at least 90 days before the record
date for the dividend or distribution. The Plan also may be amended or
terminated by the Plan Agent upon at least 90 days' written notice to all
shareholders of the Trust. All correspondence concerning the Plan should be
directed to the Trust at (800) 699-1BFM or BlackRock Financial Management, Inc.
at (800) 227-7BFM. The addresses are on the front of this report.

- --------------------------------------------------------------------------------
ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------

There have been no material changes in the Trust's investment objectives
or policies that have not been approved by the shareholders, or to its charter
or by-laws, or in the principal risk factors associated with investment in the
Trust. There have been no changes in the persons who are primarily responsible
for the day-to-day management of the Trust's portfolio.

<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK INSURED MUNICIPAL TERM TRUST INC.
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------

THE TRUST'S INVESTMENT OBJECTIVE

The Trust's investment objective is to provide current income exempt from
regular Federal income tax and to return $10 per share (the initial public
offering price per share) to investors on or about December 31, 2010.

WHO MANAGES THE TRUST?

BlackRock Financial Management, Inc. ("BlackRock" or the "Adviser") is the
investment adviser for the Trust. BlackRock is a registered investment adviser
specializing in fixed income securities. Currently, BlackRock manages
approximately $55 billion of assets across the government, mortgage, corporate
and municipal sectors. These assets are managed on behalf of institutional and
individual investors in 21 closed-end funds which trade on either the New York
Stock or American Stock Exchanges, several open-end funds and separate accounts
for more than 125 clients in the U.S. and overseas. BlackRock is a subsidiary of
PNC Asset Management Group, Inc. which is a division of PNC Bank N.A., one of
the nation's largest banking organizations.

WHAT CAN THE TRUST INVEST IN?

The Trust intends to invest at least 80% of its total assets in municipal
obligations insured as to the timely payment of both principal and interest. The
Trust may invest up to 20% of its total assets in uninsured municipal
obligations which are rated Aaa by Moody's or AAA by S&P, or are determined by
the Adviser to be of comparable credit quality (guaranteed, escrowed, or backed
in trust).

WHAT IS THE ADVISER'S INVESTMENT STRATEGY?

The Adviser will seek to meet the Trust's investment objective by managing the
assets of the Trust so as to return the initial offering price ($10 per share)
at maturity. The Trust will implement a conservative strategy that will seek to
closely match the maturity of the assets of the portfolio with the future return
of the initial investment at the end of 2010. At the Trust's termination,
BlackRock expects that the value of the securities which have matured, combined
with the value of the securities that are sold will be sufficient to return the
initial offering price to investors. On a continuous basis, the Trust will seek
its objective by actively managing its portfolio of municipal obligations and
retaining a small amount of income each year.

In addition to seeking the return of the initial offering price, the Adviser
also seeks to provide current income exempt from Federal income tax to
investors. The portfolio managers will attempt to achieve this objective by
investing in securities that provide competitive income. In addition, leverage
will be used (in an amount up to 35% of total assets) to enhance the income of
the portfolio. In order to maintain competitive yields as the Trust approaches
maturity and depending on market conditions, the Adviser will attempt to
purchase securities with call protection or maturities as close to the Trust's
maturity date as possible. Securities with call protection should provide the
portfolio with some degree of protection against reinvestment risk during times
of lower prevailing interest rates. Since the Trust's primary goal is to return
the initial offering price at maturity, any cash that the Trust receives prior
to its maturity date will be reinvested in securities with maturities which
coincide with the remaining term of the Trust. Since shorter-term securities
typically yield less than longer-term securities, this strategy will likely
result in a decline in the Trust's income over time. It is important to note
that the Trust will be managed so as to preserve the integrity of the return of
the initial offering price.

HOW ARE THE TRUST'S SHARES PURCHASED AND SOLD?
DOES THE TRUST PAY DIVIDENDS REGULARLY?

The Trust's shares are traded on the New York Stock Exchange which provides
investors with liquidity on a daily basis. Orders to buy or sell shares of the
Trust must be placed through a registered broker or financial adviser. The Trust
pays monthly dividends which are typically paid on the last business day of the
month. For shares held in the shareholder's name, dividends may be reinvested in
additional shares of the fund through the Trust's transfer agent, State Street
Bank and Trust Company. Investors who wish to hold shares in a brokerage account
should check with their financial adviser to determine whether their brokerage
firm offers dividend reinvestment services.

<PAGE>

LEVERAGE CONSIDERATIONS IN A TERM TRUST

Under current market conditions, leverage increases the income earned by the
Trust. The Trust employs leverage primarily through the issuance of preferred
stock. Leverage permits the Trust to borrow money at short-term rates and
reinvest that money in longer-term assets which typically offer higher interest
rates. The difference between the cost of the borrowed funds and the income
earned on the proceeds that are invested in longer term assets is the benefit to
the Trust from leverage. In general, the portfolio is typically leveraged at
approximately 35% of total assets.

Leverage also increases the duration (or price volatility of the net assets) of
the Trust, which can improve the performance of the fund in a declining rate
environment, but can cause net assets to decline faster than the market in a
rising rate environment. BlackRock's portfolio managers continuously monitor and
regularly review the Trust's use of leverage and the Trust may reduce, or
unwind, the amount of leverage employed should BlackRock consider that reduction
to be in the best interests of the shareholders.

SPECIAL CONSIDERATIONS AND RISK FACTORS RELEVANT TO TERM TRUSTS

THE TRUST IS INTENDED TO BE A LONG-TERM INVESTMENT AND IS NOT A SHORT-TERM
TRADING VEHICLE.

RETURN OF INITIAL INVESTMENT. Although the objective of the Trust is to return
its initial offering price upon termination, there can be no assurance that this
objective will be achieved.

DIVIDEND CONSIDERATIONS. The income and dividends paid by the Trust are likely
to decline to some extent over the term of the Trust due to the anticipated
shortening of the dollar-weighted average maturity of the Trust's assets.

LEVERAGE. The Trust utilizes leverage through the issuance of preferred stock
which involves special risks. The Trust's net asset value and market value may
be more volatile due to its use of leverage.

MARKET PRICE OF SHARES. The shares of closed-end investment companies such as
the Trust trade on the New York Stock Exchange (NYSE symbol: BMT) and as such
are subject to supply and demand influences. As a result, shares may trade at a
discount or a premium to their net asset value.

ILLIQUID SECURITIES. The Trust may invest in securities that are illiquid,
although under current market conditions the Trust expects to do so to only a
limited extent. Investing in these securities involves special risks.

ANTITAKEOVER PROVISIONS. Certain antitakeover provisions will make a change in
the Trust's business or management more difficult without the approval of the
Trust's Board of Directors and may have the effect of depriving shareholders of
an opportunity to sell their shares at a premium above the prevailing market
price.

MUNICIPAL OBLIGATIONS. Municipal obligations include debt obligations issued by
states, cities, and local authorities, and possessions and certain territories
of the United States to obtain funds for various public purposes, including the
construction of public facilities, the refinancing of outstanding obligations
and the obtaining of funds for general operating expenses and for loans to other
public institutions and facilities. The value of municipal debt securities
generally varies inversely with changes in prevailing market interest rates.
Depending on the amount of call protection that the securities in the Trust
have, the Trust may be subject to certain reinvestment risks in environments of
declining interest rates.

ALTERNATIVE MINIMUM TAX (AMT). The Trust may invest in securities subject to
alternative minimum tax. The Trust currently holds no AMT securities.

<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK INSURED MUNICIPAL TERM TRUST INC.
GLOSSARY
- --------------------------------------------------------------------------------

CLOSED-END FUND: Investment vehicle which initially offers a fixed number
of shares and trades on a stock exchange. The fund
invests in a portfolio of securities in accordance with
its stated investment objectives and policies.

DISCOUNT: When a fund's net asset value is greater than its stock
price, the fund is said to be trading at a discount.

DIVIDEND: Income generated by securities in a portfolio and
distributed to shareholders after the deduction of
expenses. This Trust declares and pays dividends on a
monthly basis.

DIVIDEND REINVESTMENT: Shareholders may elect to have all dividends and
distributions of capital gains automatically reinvested
into additional shares of the Trust.

EMBEDDED CAPS: Also known as additional interest municipal bonds. These
securities are intended to protect the income that the
Trust earns through leverage from significant increase
in short-term rates. The coupon on these bonds will
increase if short-term rates rise significantly.

MARKET PRICE: Price per share of a security trading in the secondary
market. For a closed-end fund, this is the price at
which one share of the fund trades on the stock
exchange. If you were to buy or sell shares, you would
pay or receive the market price.

NET ASSET VALUE (NAV): Net asset value is the total market value of all
securities and other assets held by the Trust, plus
income accrued on its investment, minus any liabilities
including accrued expenses, dividend by the total number
of outstanding shares. It is the underlying value of a
single share on a given day. Net asset value for the
Trust is calculated weekly and published in BARRON'S on
Saturday and THE WALL STREET JOURNAL on Monday.

PREMIUM: When a fund's stock price is greater than its net asset
value, the fund is said to be trading at a premium.

PRE-REFUNDED BONDS: These securities are collateralized by the U.S.
Government securities which are held in escrow and are
used to pay principal and interest on the tax-exempt
issue and to retire the bond in full at the date
indicated, typically at a premium to par.

<PAGE>

- --------------------------------------------------------------------------------
BLACKROCK FINANCIAL MANAGMENT, INC.
SUMMARY OF CLOSED-END FUNDS
- --------------------------------------------------------------------------------

TAXABLE TRUSTS
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
TERMINATION
STOCK SYMBOL DATE
------------ ----------
<S> <C> <C>
PERPETUAL TRUSTS
The BlackRock Income Trust Inc. ................................................... BKT N/A
The BlackRock North American Government Income Trust Inc. ......................... BNA N/A

TERM TRUSTS
The BlackRock 1998 Term Trust Inc. ................................................ BBT 12/98
The BlackRock 1999 Term Trust Inc. ................................................ BNN 12/99
The BlackRock Target Term Trust Inc. .............................................. BTT 12/00
The BlackRock 2001 Term Trust Inc. ................................................ BLK 06/01
The BlackRock Strategic Term Trust Inc. ........................................... BGT 12/02
The BlackRock Investment Quality Term Trust Inc. .................................. BQT 12/04
The BlackRock Advantage Term Trust Inc. ........................................... BAT 12/05
The BlackRock Broad Investment Grade 2009 Term Trust Inc. ......................... BCT 12/09

TAX-EXEMPT TRUSTS
- --------------------------------------------------------------------------------
<CAPTION>

TERMINATION
PERPETUAL TRUSTS STOCK SYMBOL DATE
------------ ----------
<S> <C> <C>
The BlackRock Investment Quality Municipal Trust Inc. ............................. BKN N/A
The BlackRock California Investment Quality Municipal Trust Inc. .................. RAA N/A
The BlackRock Florida Investment Quality Municipal Trust .......................... RFA N/A
The BlackRock New Jersey Investment Quality Municipal Trust Inc. .................. RNJ N/A
The BlackRock New York Investment Quality Municipal Trust Inc. .................... RNY N/A

TERM TRUSTS
The BlackRock Municipal Target Term Trust Inc. .................................... BMN 12/06
The BlackRock Insured Municipal 2008 Term Trust Inc. .............................. BRM 12/08
The BlackRock California Insured Municipal 2008 Term Trust Inc. ................... BFC 12/08
The BlackRock Florida Insured Municipal 2008 Term Trust ........................... BRF 12/08
The BlackRock New York Insured Municipal 2008 Term Trust Inc. ..................... BLN 12/08
The BlackRock Insured Municipal Term Trust Inc. ................................... BMT 12/10

</TABLE>

IF YOU WOULD LIKE FURTHER INFORMATION PLEASE CALL BLACKROCK AT (800) 227-7BFM
OR CONSULT WITH YOUR FINANCIAL ADVISOR.

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BLACKROCK FINANCIAL MANAGEMENT, INC.
AN OVERVIEW
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BlackRock Financial Management, Inc. (BlackRock) is a registered
investment adviser which specializes in managing high quality fixed income
securities, both taxable and tax exempt. BlackRock currently manages
approximately $50 billion of assets across the government, mortgage, corporate
and municipal sectors. These assets are managed on behalf of institutional and
individual investors in 21 closed-end funds traded either on the New York Stock
Exchange or the American Stock Exchange, several open-end funds and over 125
institutional clients in the United States and overseas.

BlackRock was formed in April 1988 by fixed income professionals who
sought to create an asset management firm specializing in managing fixed income
securities for individuals and institutional investors. The professionals at
BlackRock have extensive experience creating, analyzing and trading a variety of
fixed income instruments, including the most complex structured securities. In
fact, individuals at BlackRock are responsible for many of the major innovations
in the mortgage-backed and asset-backed securities market, including the
creation of the CMO, the floating rate CMO, the senior/subordinated pass-through
and the multi-class asset-backed security.

BlackRock is unique among asset management and advisory firms in the
significant emphasis it places on the development of proprietary analytical
capabilities. A quarter of the professionals at BlackRock work full-time in the
design, maintenance and use of such systems which are otherwise not generally
available to investors. BlackRock's proprietary analytical tools are used for
evaluating, investing in and designing investment strategies and portfolio of
fixed income securities, including mortgage securities, corporate debt
securities or tax-exempt securities and a variety of hedging instruments.

BlackRock has developed investment products which respond to investors'
needs and has been responsible for several major innovations in closed-end
funds. BlackRock introduced the first closed-end mortgage fund, the first
taxable and tax-exempt closed-end funds to offer a finite term, the first
closed-end fund to achieve a AAAf rating by Standard & Poor's, and the first
closed-end fund to invest primarily in North American Government securities.
BlackRock's closed-end funds currently have dividend reinvestment plans which
are designed to provide an ongoing source of demand for the stock in the
secondary market. BlackRock manages a ladder of alternative investment vehicles,
with each fund having specific investment objectives and policies.

In view of our continued desire to provide a high level of service to all
our shareholders, BlackRock maintains a toll-free number for your questions. The
number is (800) 227-7BFM (7236). We encourage you to call us with any questions
you may have about your BlackRock funds and thank you for the continued trust
you place in our abilities.

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BlackRock
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DIRECTORS
Laurence D. Fink, CHAIRMAN
Andrew F. Brimmer
Richard E. Cavanagh
Kent Dixon
Frank J. Fabozzi
James Grosfeld
James Clayburn La Force, Jr.
Walter F. Mondale
Ralph L. Schlosstein

OFFICERS
Ralph L. Schlosstein, PRESIDENT
Keith T. Anderson, VICE PRESIDENT
Michael C. Huebsch, VICE PRESIDENT
Robert S. Kapito, VICE PRESIDENT
Kevin Klingert, VICE PRESIDENT
Richard M. Shea, VICE PRESIDENT/TAX
Henry Gabbay, TREASURER
James Kong, ASSISTANT TREASURER
Karen H. Sabath, SECRETARY

INVESTMENT ADVISER
BlackRock Financial Management, Inc.
345 Park Avenue
New York, NY 10154
(800) 227-7BFM

ADMINISTRATOR
Mitchell Hutchins Asset Management Inc.
1285 Avenue of the Americas
New York, NY 10019

CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
(800) 699-1BFM

AUCTION AGENT
Bankers Trust Company
Four Albany Street
New York, NY 10006

INDEPENDENT AUDITORS
Deloitte & Touche LLP
Two World Financial Center
New York, NY 10281-1434

LEGAL COUNSEL
Skadden, Arps, Slate, Meagher & Flom LLP
919 Third Avenue
New York, NY 10022
This report is for shareholder information. This is not a prospectus intended
for use in the purchase or sale of Trust shares.

THE BLACKROCK INSURED MUNICIPAL TERM TRUST INC.
c/o Mitchell Hutchins Asset Management Inc.
1285 Avenue of the Americas
New York, NY10019
(800) 227-7BFM

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092474 20 4
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The BlackRock
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Insured Municipal
Term Trust Inc.
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Annual Report
December 31, 1997

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