BLACKROCK INSURED MUNICIPAL TERM TRUST INC, N-30D, 1999-08-25

BLACKROCK INSURED MUNICIPAL TERM TRUST INC
N-30D, 1999-08-25

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

July 31, 1999

Dear Shareholder:

Since the Trust's last report, interest rates rose sharply as U.S economic
growth remained strong, labor markets tightened and international markets began
to recover. In light of these factors, the Federal Reserve's Federal Open Market
Committee increased short-term interest rates by 25 basis points in June, citing
a concern that inflation might start to accelerate.

In tandem with the Fed's recent rate tightening, BlackRock has taken a
defensive interest rate stance. With the Treasury curve currently pricing in the
possibility of another Fed tightening by year-end, we believe that interest
rates will trade in a relatively narrow range until the economy shows signs of
slowing.

This report contains comments from your Trust's managers regarding the
markets and portfolio in addition to the Trust's semi-annual financial
statements and a detailed portfolio listing. We thank you for your continued
investment in the Trust.

Sincerely,

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

<PAGE>

July 31, 1999

Dear Shareholder:

We are pleased to present the semi-annual report for The BlackRock Insured
Municipal Term Trust Inc. ("the Trust") for the six months ended June 30, 1999.
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 six months:

<S> <C> <C> <C> <C> <C>
-------------------------------------------------------------------
6/30/99 12/31/98 CHANGE HIGH LOW
- ----------------------------------------------------------------------------------------------------------------
STOCK PRICE 10.88 $11.50 (5.39%) $11.63 $10.63
- ----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE (NAV) 10.85 $11.22 (3.30%) $11.32 $10.83
- ----------------------------------------------------------------------------------------------------------------
</TABLE>

THE FIXED INCOME MARKETS

The past six months have witnessed continued rapid expansion of the U.S.
economy. GDP growth for the second quarter of 1999 is estimated at an annual
rate of 3.5%-4%, far exceeding the historical non-inflationary level of 2%.
While BlackRock believes that growth may slow down in the second half of 1999,
we anticipate GDP to remain above 3% for the year. In spite of strong domestic
economic growth, inflationary forces continue to remain contained; still, the
Federal Reserve chose to raise its target for the federal funds rate from 4.75%
to 5.00% at its June meeting. The Fed cited an easing of financial strain, tight
labor markets and a firming of foreign economies in the release accompanying the
move. The Fed dropped its tightening bias to a neutral bias, which should reduce
the likelihood of another hike at the August 24th meeting. However, an
additional 25-50 basis points of tightening by year end is possible, as the
combination of a very strong domestic economy and an improving situation in
Europe and Japan may allow for tighter monetary policy.

U.S. Treasury securities dramatically reversed their fourth quarter gains
in the first half of 1999. The yield of the 10-Year Treasury posted a net
decline of 118 basis points (1.18%), beginning 1999 at 4.65% and closing on June
30, 1999 at 5.78%. Strong economic numbers led the Federal Reserve to adopt a
tightening bias on May 18, 1999 and ultimately raised interest rates by 25 basis
points on June 30, 1999. The Federal Reserve eased rates by 0.75% in 1998
because of the global financial crisis but cited in their June 1999 meeting
"Since then much of the financial strain has eased, foreign economies have
firmed and economic activity in the U.S. has moved forward at a brisk pace." We
anticipate Treasuries will trade in a relatively narrow range for the balance of
1999 unless the Fed takes further action.

<PAGE>

Municipal bonds outperformed the taxable domestic bond market during the
past six months, returning -0.90% (as measured by the LEHMAN MUNICIPAL INDEX)
versus the LEHMAN AGGREGATE INDEX'S -1.37% on a pre-tax basis. Municipal bonds
continue to appear attractive relative to Treasuries on a long-term historical
basis, and we believe that reduced Treasury supply and increased crossover
activity should keep ratios at higher than normal levels. Supply and demand
technicals continue to improve in the municipal market as supply has declined
23% in the first half of 1999 from last year. Much of the drop in issuance can
be attributed to the plunge in refunding supply, which is down nearly 50% versus
last year. Retail investors have been adding municipals to their portfolios at
an aggressive pace, which should result in the second consecutive year of net
positive cash flows into mutual funds after having negative flows during the
previous four years. Due to the factors mentioned above, we believe municipals
remain a compelling investment opportunity going forward.

THE TRUST'S PORTFOLIO AND INVESTMENT STRATEGY

The Trust's portfolio is actively managed to diversify exposure to 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. Additionally, the Trust emphasizes securities whose
maturity dates match the termination date of the Trust. Trading activity in the
Trust remained low during the period, as the market prices of a significant
portion of the portfolio's bonds are currently above the prices at which they
were bought. A bond sold at a gain would result in the Trust realizing a capital
gain, which may require a taxable distribution. Since one of the Trust's primary
investment objectives is to pay out TAX-EXEMPT income, we believe that
restructuring the portfolio in a higher interest rate environment remains the
most prudent strategy.

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. At the end of the semi-annual period, the Trust's leverage amount was
31% of total assets. During the past six months, the Trust's borrowing costs
have remained favorable.

The following chart compares the Trust's current and December 31, 1998
asset composition:

- --------------------------------------------------------------------------------
THE BLACKROCK INSURED MUNICIPAL TERM TRUST INC.
- --------------------------------------------------------------------------------
SECTOR JUNE 30, 1999 DECEMBER 31, 1998
- --------------------------------------------------------------------------------
City, County and State 25% 26%
- --------------------------------------------------------------------------------
Hospital 16% 17%
- --------------------------------------------------------------------------------
Water & Sewer 16% 15%
- --------------------------------------------------------------------------------
Education 12% 7%
- --------------------------------------------------------------------------------
Utility/Power 11% 11%
- --------------------------------------------------------------------------------
Tax Revenue 6% 8%
- --------------------------------------------------------------------------------
Lease Revenue 6% 6%
- --------------------------------------------------------------------------------
Transportation 4% 3%
- --------------------------------------------------------------------------------
Housing 3% 3%
- --------------------------------------------------------------------------------
Miscellaneous Revenue 1% 4%
- --------------------------------------------------------------------------------

<PAGE>

We look forward to managing the Trust to benefit from the opportunities
available in the fixed income markets and to meet its investment objectives. We
thank you for your investment in the BlackRock Insured Municipal Term Trust Inc.
Please feel free to contact our marketing center at (800) 227-7BFM (7236) if you
have specific questions which were not addressed in this report.

Sincerely,
/s/ Robert S. Kapito /s/ Kevin Klingert
- -------------------- ------------------
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 6/30/99: $10.88
- --------------------------------------------------------------------------------
Net Asset Value as of 6/30/99: $10.85
- --------------------------------------------------------------------------------
Yield on Closing Stock Price as of 6/30/99 ($10.88)1: 5.74%
- --------------------------------------------------------------------------------
Current Monthly Distribution per Common Share2: $.05208
- --------------------------------------------------------------------------------
Current Annualized Distribution per Common Share2: $.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>

<TABLE>
<CAPTION>
THE BLACKROCK INSURED MUNICIPAL TERM TRUST INC.
PORTFOLIO OF INVESTMENTS JUNE 30, 1999 (UNAUDITED)
- -----------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT OPTION CALL VALUE
RATING* (000) DESCRIPTION PROVISIONS+ (NOTE 1)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LONG-TERM INVESTMENTS--142.8%
ALABAMA--1.1%
AAA $ 3,000++ MOBILE CNTY., G.O., 6.70%, 2/01/00, MBIA ................................ N/A $ 3,112,380
-----------
ARIZONA--1.6%
AAA 4,180 University of Arizona Med. Ctr. Hosp. Rev., 6.25%, 7/01/10, MBIA ........ 7/02 at 102 4,461,481
-----------
CALIFORNIA--10.4%
California St., G.O., FGIC,
AAA 4,355++ 6.80%, 11/01/04 ..................................................... N/A 4,936,915
AAA 145 6.80%, 11/01/10 ..................................................... 11/04 at 102 161,765
AAA 3,400++ California St. Pub. Wks., 6.60%, 12/01/02, AMBAC ........................ N/A 3,729,902
AAA 6,100 Contra Costa Trans. Auth., 6.50%, 3/01/09, FGIC ......................... ETM 6,461,486
AAA 3,500 Eastern Mun. Wtr. Dist., 6.50%, 7/01/09, FGIC ........................... 7/01 at 101 3,662,925
AAA 3,065 Los Angeles Cnty. Leasing Corp., 6.05%, 12/01/10, AMBAC ................. No Opt. Call 3,363,317
AAA 3,000++ San Francisco Bay Area Rapid Trans., 6.75%, 7/01/00, AMBAC .............. N/A 3,157,680
AAA 3,500 Sonoma Cnty. Correct. Fac., C.O.P., 6.10%, 11/15/12, AMBAC .............. 11/02 at 102 3,737,335
-----------
29,211,325
-----------
DISTRICT OF COLUMBIA--1.3%
AAA 3,500++ District of Columbia, G.O., Ser. A, 6.875%, 6/01/00, MBIA ............... N/A 3,668,525
-----------
FLORIDA--9.2%
AAA 10,750++ Broward Cnty. Sch. Bd., 6.50%, 7/01/02, AMBAC ........................... N/A 11,604,840
AAA 12,195 Jacksonville Excise Tax Rev., 6.50%, 10/01/10, AMBAC .................... 10/02 at 102 13,109,015
AAA 1,000 Volusia Cnty. Edl. Fac., 6.50%, 10/15/10, CONNIE LEE .................... 10/02 at 102 1,073,980
-----------
25,787,835
-----------
GEORGIA--1.9%
AAA 5,000 Henry Cnty. Hosp. Auth. Rev., 6.375%, 7/01/09, FGIC ..................... 7/02 at 102 5,303,400
-----------
ILLINOIS--13.2%
AAA 2,120 Chicago, Res. Mtg. Rev., Zero Coupon, 10/01/09, MBIA .................... No Opt. Call 1,042,892
Cook Cnty. G.O., MBIA, Ser. A,
AAA 7,000++ 6.50%, 11/15/02 ..................................................... N/A 7,593,110
AAA 4,500++ 7.00%, 11/01/00 ..................................................... N/A 4,768,920
AAA 5,000++ Cook Cnty., Community Schs., 6.50%, 1/01/02, FGIC ....................... N/A 5,254,300
AAA 5,000++ Illinois Edl. Fac. Auth. Rev., 5.70%, 7/01/03, FGIC ..................... N/A 5,228,100
Illinois Hlth. Fac. Auth. Rev., FGIC,
AAA 3,000 Ser. A, 6.75%, 1/01/10 .............................................. 1/00 at 102 3,087,240
AAA 1,750++ Ser. C, 6.75%, 1/01/00 .............................................. N/A 1,810,270
AAA 7,980 Kendell Kane & Will Cnty. Sch. Dist., 6.25%, 9/01/11, FGIC .............. 9/01 at 100 8,228,178
----------
37,013,010
-----------
INDIANA--3.1%
AAA 1,340 COLUMBUS SCH. BD., SER. A, 6.625%, 7/01/11, AMBAC ....................... 7/02 at 102 1,433,237
-----------
AAA 3,750 Indiana St. Edl. Fac. Auth. Rev., Ser. A, 6.60%, 1/01/11, MBIA .......... 1/02 at 102 3,960,375
AAA 3,000++ Monroe Cnty. Hosp. Auth. Rev., Bloomington Hosp., 6.65%, 5/01/02, MBIA .. N/A 3,210,030
-----------
8,603,642
-----------
LOUISIANA--6.6%
AAA 14,385++ Louisiana St., G.O., Ser. A, 6.50%, 5/01/02, AMBAC ...................... N/A 15,463,012
AAA 2,905++ New Orleans Pub. Impt., G.O., 6.60%, 9/01/02, FGIC ...................... N/A 3,098,066
-----------
18,561,078
-----------
</TABLE>

See Notes to Financial Statements.

<PAGE>

<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT OPTION CALL VALUE
RATING* (000) DESCRIPTION PROVISIONS+ (NOTE 1)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Massachusetts--16.3%
AAA $ 2,100++ Boston, G.O., Ser. A, 6.50%, 7/01/02, AMBAC ............................. N/A $ 2,246,181
Massachusetts St., G.O.,
AAA 2,350++ Ser. D, 6.00%, 7/01/01, MBIA ........................................ N/A 2,433,609
AAA 7,865++ Ser. C, 6.70%, 11/01/04, FGIC ....................................... N/A 8,736,914
AAA 780++ Ser. C, 6.75%, 8/01/01, AMBAC ....................................... N/A 834,928
AAA 440 Ser. C, 6.75%, 8/01/09, AMBAC ....................................... 8/01 at 102 468,081
Massachusetts St. Hlth. & Edl. Fac. Auth. Rev.,
AAA 2,000++ Ser. C, 6.50%, 7/01/02, FGIC ........................................ N/A 2,159,040
AAA 5,000 Ser. D, 6.50%, 7/01/10, MBIA ........................................ 7/02 at 102 5,340,800
AAA 3,250++ Ser. C, 7.25%, 7/01/00, MBIA ........................................ N/A 3,428,295
Massachusetts St. Hsg. Fin. Agcy., FNMA,
AAA 5,000 Ser. H, 6.75%, 11/15/12 ............................................. 11/03 at 102 5,325,350
AAA 5,500 Residential Dev., Ser. A, 6.875%, 11/15/11 .......................... 5/02 at 102 5,901,060
AAA 600 Residential Dev., Ser. C, 6.875%, 11/15/11 .......................... 5/02 at 102 643,752
AAA 7,630 Massachusetts St. Wtr. Res., Ser. B, 6.25%, 11/01/10, MBIA .............. 11/02 at 102 8,141,668
-----------
45,659,678
-----------
MICHIGAN--4.0%
AAA 2,375++ Chippewa Valley, Sch. Bldg. & Site Rev., 6.375%, 5/01/01, FGIC .......... N/A 2,498,714
Michigan Mun. Bd. Auth. Rev.,
AAA 900 Ser. A, 6.50%, 11/01/12, MBIA ....................................... 11/02 at 102 969,228
AAA 2,040 6.45%, 11/01/07, AMBAC .............................................. 11/04 at 102 2,257,872
AAA 2,050 6.65%, 11/01/09, AMBAC .............................................. 11/04 at 102 2,282,982
AAA 3,000 Western Township Util. Auth. Swr. Dist. Sys. Rev., 6.50%, 1/01/10, FSA .. 1/02 at 100 3,114,600
-----------
11,123,396
-----------
MISSISSIPPI--0.7%
AAA 1,800 Harrison Cnty. Waste Wtr. Mgmt., 6.75%, 2/01/11, FGIC ................... 2/01 at 102 1,888,596
-----------
NEVADA--7.1%
AAA 4,000++ Clark Cnty., G.O., Ser. A 6.50%, 6/01/02, AMBAC ......................... N/A 4,311,680
AAA 5,215++ Clark Cnty. Arpt., Ser. A 6.25%, 6/01/01, FGIC .......................... N/A 5,420,888
Clark Cnty. Sch. Dist.,
AAA 4,185++ 6.75%, 12/15/04, FGIC ............................................... N/A 4,667,740
AAA 5,175++ Ser. A, 7.00%, 6/01/01, MBIA ........................................ N/A 5,497,609
-----------
19,897,917
-----------
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 2,122,720
-----------
NEW YORK--11.1%
AAA 4,500++ New York City, G.O., Ser. B, 6.95%, 8/15/04, MBIA ....................... N/A 5,044,680
New York St. Env. Fac. Corp. P.C.R.,
AAA 6,155 6.70%, 5/15/09 ...................................................... 11/04 at 102 6,832,358
AAA 4,965 6.80%, 5/15/10 ...................................................... 11/04 at 102 5,527,187
New York St. Medicare Fac., AMBAC,
AAA 9,715++ 6.60%, 2/15/05 ...................................................... N/A 10,841,454
AAA 2,695++ 6.625%, 2/15/05 ..................................................... N/A 3,010,800
-----------
31,256,479
-----------
OHIO--6.1%
AAA 12,000++ Cleveland Wtrwks. Rev., First Mtg., Ser. F, AMBAC 6.50%, 1/01/02 ........ N/A 12,840,840
AAA 3,900++ Lucas Cnty. Hosp. Impt. Rev., St. Vincent Med. Ctr., 6.50%, 8/15/02, MBIA N/A 4,186,884
-----------
17,027,724
-----------
See Notes to Financial Statements.

</TABLE>

<PAGE>

<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT OPTION CALL VALUE
RATING* (000) DESCRIPTION PROVISIONS+ (NOTE 1)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
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 $ 6,031,574
-----------
PENNSYLVANIA--6.1%
AAA 5,000 Dauphin Cnty. Gen. Auth. Hosp. Rev., 6.25%, 7/01/08, MBIA ............... 7/02 at 102 5,274,750
AAA 2,100 Philadelphia Wtr. & Waste Rev., Ser. A, 5.625%, 6/15/08, AMBAC .......... No Opt. Call 2,206,470
AAA 6,005++ Pittsburgh, G.O., Ser. D, 6.00%, 9/01/02, AMBAC ......................... N/A 6,413,160
AAA 3,000++ Pittsburgh Wtr. & Swr., 6.75%, 9/01/01, FGIC ............................ N/A 3,216,990
-----------
17,111,370
-----------
RHODE ISLAND--4.6%
AAA RHODE ISLAND CLEAN WTR. PROTN. FIN. AGCY., P.C.R.,
REVOLVING FD. POOLED LN., ISSUE A, MBIA
AAA 2,155++ 6.70%, 10/01/10 ..................................................... N/A 2,345,696
AAA 235 6.70%, 10/01/10 ..................................................... 10/02 at 102 252,832
AAA 10,000++ Rhode Island St. Pub. Bldgs. Auth., St. Pub. Proj. Rev.,
Ser. A, 6.75%, 2/01/00, AMBAC ....................................... N/A 10,374,500
-----------
12,973,028
-----------
SOUTH CAROLINA--8.6%
Piedmont Mun. Pwr. Agcy. Elec. Rev.,
AAA 14,925 6.30%, 1/01/11, MBIA ................................................ 1/03 at 102 15,898,558
AAA 7,900 6.50%, 1/01/11, FGIC ................................................ 1/01 at 102 8,251,550
-----------
24,150,108
-----------
TEXAS--15.8%
Austin Util. Sys. Rev. Comb., Ser A., FGIC,
AAA 7,475++ 6.00%, 5/15/00 ...................................................... N/A 7,631,302
AAA 1,055 6.00%, 5/15/10 ...................................................... 5/00 at 100 1,066,331
AAA 1,580 Dallas Cnty. Road Imp., G.O., 5.625%, 8/15/10 ........................... 8/01 at 100 1,605,754
AAA 2,500 Dallas Ft. Worth Regl. Arpt. Rev., Ser. A, 7.375%, 11/01/10, FGIC ....... 5/04 at 102 2,827,825
AAA 8,000 El Paso Impt. Auth. Rev., G.O., Ser. A, 6.375%, 8/15/10, FGIC ........... No Opt. Call 8,373,440
Harris Cnty., Toll Road, FGIC,
AAA 2,585 Ser. B, Zero Coupon, 8/15/08 .......................................... No Opt. Call 1,629,300
AAA 6,310++ Sr. Lien, Ser. A, 6.50%, 8/15/02 ...................................... N/A 6,825,842
AAA 4,775 Sr. Lien, Ser. A, 6.50%, 8/15/11 ...................................... 8/02 at 102 5,116,174
AAA 10,440 HOUSTON WTR. & SWR. SYS., SER. C, ZERO COUPON, 12/01/10, AMBAC .......... No Opt. Call 5,833,350
AAA 1,840++ North Texas Mun. Wtr. Dist., 6.50%, 6/01/03, MBIA ....................... N/A 1,977,080
AAA 1,500 Texas Mun. Pwr. Agcy., Ser. A, 6.75%, 9/01/12, AMBAC .................... 9/01 at 102 1,593,105
-----------
44,479,503
-----------
UTAH--1.2%
AAA 1,450 Salt Lake City Mun. Bldg. Lease Rev., 6.15%, 10/01/10, MBIA ............. 10/04 at 101 1,537,304
AAA 3,175 Salt Lake City Wtr. Conservancy, Zero Coupon, 10/01/10, AMBAC ........... No Opt. Call 1,804,956
-----------
3,342,260
-----------
VIRGINIA--3.6%
Peninsula Port Auth., Riverside Hlth. Sys., MBIA,
AAA 6,000++ Proj. A, 6.625%, 7/01/02 ............................................ N/A 6,497,940
AAA 3,380 Proj. B, 6.625%, 7/01/10 ............................................ 7/02 at 102 3,630,864
-----------
10,128,804
-----------
WASHINGTON--5.7%
AAA 4,650++ Port of Seattle Rev., Ser. C, 6.60%, 8/01/02, MBIA ...................... N/A 5,040,088
Washington St. Pub. Pwr. Supply Sys. Rev.,
AAA 2,905 Zero Coupon, 7/01/10, MBIA ............................................ No Opt. Call 7,349,656
AAA 3,500++ Nuclear Proj. No. 2, Ser. A, 7.00%, 7/01/00, FGIC ..................... N/A 3,683,575
-----------
16,073,319
-----------
WISCONSIN--0.7%
AAA 2,000++ Wisconsin St. Hlth. & Edl. Facs. Auth. Rev., Wausau Hosp. Inc., Ser. A,
6.625%, 2/15/01, AMBAC ................................................ N/A 2,116,160
-----------
Total Long-Term Investments (cost $370,350,415) ......................... 401,105,312
-----------
</TABLE>

See Notes to Financial Statements.

<PAGE>

* Rating: Using the higher of Standard & Poor's, Moody's or Fitch's rating.
** For purposes of amortized cost evaluation, the maturity date of this
investment is considered to be the earlier of the next date in which the
security can be redeemed at par, or the next day in which the rate of
interest is adjusted.
+ Option call provisions: date (month/year) and prices of the earliest optional
call or redemption. There may be other call provisions at varying prices at
later dates.
++ This bond is prerefunded.
See Glossary for definition.

<CAPTION>
<S> <C> <C>
AMBAC -- American Municipal Bond Assurance Corporation FNMA -- Federal National Mortgage Association
CONNIIE LEE -- College Construction Loan Insurance Association FRDD -- Floating Rate Daily Demand**
C.O.P. -- Certificate of Participation FSA -- Financial Security Assurance, Inc.
ETM -- Escrowed to Maturity G.O. -- General Obligation Bond
FGIC -- Financial Guaranty Insurance Company MBIA -- Municipal Bond Insurance Association
P.C.R. -- Pollution Control Revenue
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

See Notes to Financial Statements.

<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK INSURED
MUNICIPAL TERM TRUST INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $370,750,415)
(Note 1) ................................................... $401,505,312
Cash ......................................................... 34,639
Receivable for investments sold .............................. 2,040,000
Interest receivable .......................................... 7,608,853
Other assets ................................................. 45,910
------------
411,234,714
------------
LIABILITIES
Investment Advisory fee payable (Note 2) ..................... 119,023
Dividends payable--preferred stock ........................... 104,847
Administration fee payable (Note 2) .......................... 34,007
Other accrued expenses ....................................... 138,192
------------
396,069
------------
NET INVESTMENT ASSETS ........................................ $410,838,645
============
Net investment 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 ........................ 10,315,788
Accumulated net realized loss .............................. (324,584)
Net unrealized appreciation .................................. 30,754,897
------------
Net investment assets, June 30, 1999 ....................... $410,838,645
============
Net assets applicable to common
shareholders ............................................. $280,838,645
============
Net asset value per common share:
($280,838,645 / 25,885,639 shares of
common stock issued and outstanding) ....................... $10.85
======

- -------------------------------------------------------------------------------
THE BLACKROCK INSURED
MUNICIPAL TERM TRUST INC.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
- -------------------------------------------------------------------------------

NET INVESTMENT INCOME
Income
Interest and discount earned ............................... $12,326,724
-----------
Operating expenses
Investment advisory ........................................ 728,122
Administration ............................................. 208,035
Auction agent .............................................. 161,000
Custodian .................................................. 58,000
Reports to shareholders .................................... 40,000
Directors .................................................. 37,500
Audit ...................................................... 22,000
Transfer agent ............................................. 16,000
Legal ...................................................... 5,500
Miscellaneous ................................................ 89,020
-----------
Total expenses ............................................. 1,365,177
-----------
Net investment income ........................................ 10,961,547
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (NOTE 3)
Net realized gain on investments ............................. 27,310
Net change in unrealized appreciation on
investments ................................................ (10,508,711)
------------
Net loss on investments ...................................... (10,481,401)
------------
NET INCREASE IN NET INVESTMENT
ASSETS RESULTING FROM OPERATIONS ........................... $ 480,146
============

See Notes to Financial Statements.

<PAGE>

- -----------------------------------------------------------------------------------------------------------------------------------
THE BLACKROCK INSURED MUNICIPAL TERM TRUST INC.
STATEMENTS OF CHANGES IN NET INVESTMENT ASSETS (UNAUDITED)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
1999 1998
----------- -----------
INCREASE IN NET INVESTMENT ASSETS
Operations:
Net investment income ....................................................................... $10,961,547 $ 21,924,387
Net realized gain on investments ............................................................ 27,310 16,839
Net change in unrealized appreciation on investments ........................................ (10,508,711) (813,183)
----------- ----------
Net increase in net investment assets resulting from operations ............................. 480,146 21,128,043
----------- ----------
Dividends:
To common shareholders from net investment income ........................................... (8,088,581) (16,177,201)
To preferred shareholders from net investment income ........................................ (2,022,176) (4,443,277)
----------- ----------
(10,110,757) (20,620,478)
----------- ----------
Total increase (decrease) ................................................................. (9,630,611) 507,565
----------- ----------
NET INVESTMENT ASSETS
Beginning of period ........................................................................... 420,469,256 419,961,691
----------- ----------
End of period ................................................................................. $410,838,645 $420,469,256
=========== ===========
</TABLE>
10

<PAGE>

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

SIX MONTHS
ENDED
JUNE 30, YEAR ENDED DECEMBER 31,
---------- ---------------------------------------------------------
1999 1998 1997 1996 1995 1994
----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C>
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period ........... $11.22 $11.20 $10.87 $11.02 $ 9.73 $11.18
------ ------ ------ ------ ------ ------
Net investment income ........................ 0.42 0.85 0.84 0.83 0.84 0.82
Net realized and unrealized gain (loss)
on investments .............................. (0.40) (0.03) 0.29 (0.18) 1.27 (1.48)
------ ------ ------ ------ ------ ------
Net increase (decrease) from investment
operations .................................. 0.02 0.82 1.13 0.65 2.11 (0.66)
------ ------ ------ ------ ------ ------
Dividends from net investment income to:
Preferred Shareholders ....................... (0.08) (0.18) (0.18) (0.18) (0.20) (0.14)
Common shareholders .......................... (0.31) (0.62) (0.62) (0.62) (0.62) (0.62)
Distributions from net realized gain on
investments to:
Preferred shareholders ....................... -- -- -- -- -- (0.01)
Common shareholders .......................... -- -- -- -- -- (0.02)
------ ------ ------ ------ ------ ------
Total dividends and distributions .............. (0.39) (0.80) (0.80) (0.80) (0.82) (0.79)
------ ----- ------ ------ ------ ------
Net asset value, end of period* ................ $10.85 $11.22 $11.20 $10.87 $11.02 $ 9.73
====== ====== ====== ====== ====== ======
Market value, end of period* ................... $10.88 $11.50 $11.00 $10.13 $10.00 $ 8.50
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN+ ....................... (2.75%) 10.53% 15.22% 7.59% 25.31% (13.38%)
====== ====== ====== ====== ====== ======
RATIOS TO AVERAGE NET ASSETS OF
COMMON SHAREHOLDERS:++
Expenses ....................................... 0.95%+++ 0.93% 0.94% 0.97% 0.96% 1.04%
Net investment income before preferred stock
dividends ................................... 7.66%+++ 7.56% 7.66% 7.66% 7.97% 7.99%
Preferred stock dividends ...................... 1.41%+++ 1.53% 1.62% 1.61% 1.87% 1.44%
Net investment income available to common
shareholders ................................ 6.25%+++ 6.03% 6.04% 6.05% 6.10% 6.55%

SUPPLEMENTAL DATA:
Average net assets of common shareholders
(in thousands) ............................... $288,369 $290,004 $283,531 $281,521 $272,868 $265,851
Portfolio turnover ............................. 0% 0% 1% 1% 1% 31%
Net assets of common shareholders,
end of period (in thousands) ................. $280,839 $290,469 $289,962 $281,470 $285,226 $251,856
Preferred stock outstanding (in thousands) ..... $130,000 $130,000 $130,000 $130,000 $130,000 $130,000
Asset coverage per share of
preferred stock, end of period# .............. $ 79,007 $ 80,859 $ 80,762 $ 79,129 $ 79,851 $146,868

- ----------------
</TABLE>

* Net asset value and market value are published in BARRON'S each Saturday,
THE NEW YORK TIMES and THE WALL STREET JOURNAL each Monday.
# 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. Total
investment return for period of less than one year has not been annualized.
++ 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.
+++ Annualized.

The information above represents the unaudited 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 periods 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 (UNAUDITED)
- --------------------------------------------------------------------------------

NOTE 1. ORGANIZATION & ACCOUNTING POLICIES

The BlackRock Insured Municipal Term Trust Inc. (the "Trust"), was organized in
Maryland on December 23, 1991 as a diversified, closed-end management investment
company. The Trust's investment objective is to manage a diversified portfolio
of high quality 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 more than 60 days are valued at
current market quotations. 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, or by amortizing their value on the 61st day prior to maturity,
if their original term to maturity from date of purchase exceeded 60 days.

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

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

DIVIDENDS AND DISTRIBUTIONS: The Trust declares and pays dividends and
distributions to common shareholders monthly from net investment income, net
realized short-term capital gains and other sources, if necessary. Net long-term
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
BlackRock Advisors, Inc., which is an indirect majority-owned subsidiary of PNC
Bank, N.A., and an Administration Agreement with Mitchell Hutchins Asset
Management Inc. (the "Administrator"), which is a wholly-owned subsidiary of
PaineWebber Incorporated.

The investment 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

Purchases and sales of SECURITIES investment securities, other than short-term
invest- ments, for the six months ended June 30, 1999 aggregated $1,177,960 and
$1,174,440, respectively.

<PAGE>

The federal income tax basis of the Trust's investments at December 31,
1998 was substantially the same as the basis for financial reporting, and
accordingly, gross and net unrealized appreciation for federal income tax
purposes was $30,754,897.

For federal income tax purposes, the Trust had a capital loss carryforward at
December 31, 1998 of $351,951 of which $306,027 will expire in 2003 and $45,924
will expire in 2005. 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 June 30, 1999, the Adviser owned 10,583
shares. As of June 30, 1999, there were 5,200 preferred shares outstanding as
follows: 2,600 shares of Series M7 and M28, 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 2.48% to 5.03% for the six months ended June 30,
1999.

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 stockholders 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 June 30, 1999, the Board of Directors of the Trust declared
dividends from undistributed earnings of $0.05208 per common share payable July
30, 1999 to shareholders of record on July 15, 1999.

For the period July 1, 1999 through July 31, 1999, dividends declared on
preferred shares totalled $312,962 in aggregate for the two outstanding
preferred share series.

13
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK INSURED MUNICIPAL TERM TRUST INC.
DIVIDEND REINVESTMENT PLAN
- --------------------------------------------------------------------------------

Pursuant to the Trust's Dividend Reinvestment Plan (the "Plan"),
shareholders will have all distributions of dividends and capital gains
reinvested by State Street Bank and Trust Company (the "Plan Agent") in Trust
shares pursuant to the Plan unless an election is made to receive such amounts
in cash. Shareholders who elect not to 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 transfer agent, 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
Exchange or elsewhere, for the participants' accounts. The Trust will not issue
any new shares in connection with 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 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.

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 by the Plan Agent
upon at least 90 days' written notice to all shareholders of the Trust. The Plan
may be terminated by the Plan Agent or the Trust upon at least 30 days written
notice to all shareholders of the Trust. All correspondence concerning the Plan
should be directed to the Plan Agent at (800) 699-1BFM. The addresses are on the
front of this report.

<PAGE>

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

YEAR 2000 READINESS DISCLOSURE. The Trust is currently in the process of
evaluating its information technology infrastructure for Year 2000 compliance.
Substantially all of the Trust's information systems are supplied by the
Adviser. The Adviser has advised the Trust that it is currently evaluating
whether such systems are year 2000 compliant and that it expects to incur costs
of up to approximately five hundred thousand dollars to complete such evaluation
and to make any modifications to its systems as may be necessary to achieve Year
2000 compliance. The Adviser has advised the Trust that it has fully tested its
systems for Year 2000 compliance. The Trust may be required to bear a portion of
such cost incurred by the Adviser in this regard. The Adviser has advised the
Trust that it does not anticipate any material disruption in the operations of
the Trust as a result of any failure by the Adviser to achieve Year 2000
compliance. There can be no assurance that the costs will not exceed the amount
referred to above or that the Trust will not experience a disruption in
operations.

The Adviser has advised the Trust that it is in the process of evaluating
the Year 2000 compliance of various suppliers of the Adviser and the Trust. The
Adviser has advised the Trust that it has communicated with such suppliers to
determine their Year 2000 compliance status and the extent to which the Adviser
or the Trust could be affected by any supplier's Year 2000 compliance issues. To
date, the Adviser has received responses from all such suppliers with respect to
their Year 2000 compliance, and there can be no assurance that the systems of
such suppliers, who are beyond the Trust's control, will be Year 2000 compliant.
In the event that any of the Trust's significant suppliers do not successfully
and timely achieve Year 2000 compliance, the Trust's business or operations
could be adversely affected. The Adviser has advised the Trust that it is in the
process of preparing a contingency plan for Year 2000 compliance by its
suppliers. There can be no assurance that such contingency plan will be
successful in preventing a disruption of the Trust's operations.

The Trust is designating this disclosure as its Year 2000 readiness
disclosure for all purposes under the Year 2000 Information and Readiness
Disclosure Act and the foregoing information shall constitute a Year 2000
statement for purposes of that Act.

ANNUAL MEETING OF TRUST SHAREHOLDERS. 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.

The Annual Meeting of Trust Shareholders was held May 19, 1999 to vote on
the following matters:
(1)To elect three Directors as follows:

<TABLE>
<CAPTION>
DIRECTOR CLASS TERM EXPIRING
-------- ----- ------- --------
<S> <C> <C> <C>
Richard E. Cavanagh ....................................................... I 3 years 2002
James Grosfeld ............................................................ I 3 years 2002
James Clayburn La Force, Jr. .............................................. I 3 years 2002

Directors whose term of office continues beyond this meeting are Andrew
F. Brimmer, Kent Dixon, Frank J. Fabozzi, Laurence D. Fink, Walter F.
Mondale and Ralph L. Schlosstein.
</TABLE>

(2)To ratify the selection of Deloitte & Touche LLP as independent public
accountants of the Trust for the fiscal year ending December 31, 1999.

Shareholders elected the three Directors and ratified the selection of
Deloitte & Touche LLP. The results of the voting was as follows:
<TABLE>
<CAPTION>
VOTES FOR* VOTES AGAINST* ABSTENTIONS*
---------- ------------- -----------
<S> <C> <C> <C>
Richard E. Cavanagh ....................................................... 4,663 -- 3
James Grosfeld ............................................................ 22,846,895 -- 320,894
James Clayburn La Force, Jr. .............................................. 22,841,886 -- 325,903
Ratification of Deloitte & Touche LLP ..................................... 22,748,066 95,686 324,037
</TABLE>
- --------------------
*The votes represent common and preferred shareholders voting as a single class
except for the election of RIchard E. Cavanagh who was elected by preferred
shareholders.

<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK INSURED MUNICIPAL TERM TRUST INC.
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------
THE TRUST'S INVESTMENT OBJECTIVE

The BlackRock Insured Municipal Term 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 an
SEC-registered investment adviser. BlackRock and its affiliates currently manage
over $141 billion on behalf of taxable and tax-exempt clients worldwide.
Strategies include fixed income, equity and cash and may incorporate both
domestic and international securities. Domestic fixed-income strategies utilize
the government, mortgage, corporate and municipal bond sectors. BlackRock
manages twenty-one closed-end funds that are traded on either the New York or
American stock exchanges, and a $25 billion family of open-end funds. Blackrock
manages over 470 accounts, domiciled in the United States and overseas.

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 Adviser 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. If market conditions such as high interest rate
volatility, force a choice between current income and risking the return of the
initial offering price, it is likely that the return of the initial offering
price will be emphasized.

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.

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.

INVESTMENT GRADE MUNICIPAL OBLIGATIONS. 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.

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.

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.

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, divided 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, THE NEW YORK TIMES 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>

<TABLE>
<CAPTION>
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BLACKROCK FINANCIAL MANAGEMENT, INC.
SUMMARY OF CLOSED-END FUNDS
- ------------------------------------------------------------------------------------------------------------------------------------
TAXABLE TRUSTS
- ------------------------------------------------------------------------------------------------------------------------------------
STOCK MATURITY
PERPETUAL TRUSTS SYMBOL DATE
------ ------
<S> <C> <C>
The BlackRock Income Trust Inc. BKT N/A
The BlackRock North American Government Income Trust Inc. BNA N/A
The BlackRock High Yield Trust BHY N/A

TERM TRUSTS
The BlackRock 1999 Term Trust Inc. BNN 12/99
The BlackRock Target Term Trust Inc. BTT 12/00
The BlackRock 2001 Term Trust Inc. BTM 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
</TABLE>

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

STOCK MATURITY
PERPETUAL TRUSTS 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 (7236) OR CONSULT WITH YOUR FINANCIAL ADVISOR.

<PAGE>

BlackRock

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
Deutsche Bank
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

The accompanying financial statements as of June 30, 1999 were not audited
and accordingly, no opinion is expressed on them

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

[Logo omitted] 092474 20 4
092474 10 5
Printed on recycled paper 092474 30 3

THE BLACKROCK
INSURED MUNICIPAL
TERM TRUST INC.
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
JUNE 30, 1999