BLACKROCK INSURED MUNICIPAL TERM TRUST INC, N-30D, 2000-03-01

BLACKROCK INSURED MUNICIPAL TERM TRUST INC
N-30D, 2000-03-01

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

January 31, 2000

Dear Shareholder:

After easing monetary policy three times during the fourth quarter of
1998, the Federal Reserve reversed its trend by raising the Fed funds target
rate 75 basis points (to 5.50%) over the course of 1999 in response to robust
GDP, low unemployment and rising equity prices. U.S. Treasury yields rose
significantly during the past twelve months, with the yield of the 30-year
Treasury rising above 6.00% for the first time since May 1998.

Despite the rise in Treasury yields, continued strong economic growth may
spur the Federal Reserve to proactively fight perceived inflation through
continued monetary policy tightening in 2000. Until the inflation picture
becomes clearer, we expect interest rates to remain largely range-bound.
Accordingly, we will continue to seek the most attractive relative value
opportunities and utilize our proprietary risk management systems to help the
Trust to achieve its investment objectives.

This report contains a summary of market conditions during the annual
period and a review of portfolio strategy by your Trust's managers in addition
to the Trust's audited financial statements and a detailed portfolio list of the
Trust's holdings. Continued thanks for your confidence in BlackRock. We
appreciate the opportunity to help you achieve your long-term investment goals.

Sincerely,

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

1
<PAGE>

January 31, 2000

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, 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 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 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 NAV
over the past year:

-----------------------------------------------------------------------
12/31/99 12/31/98 CHANGE HIGH LOW
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
STOCK PRICE $9.4375 $11.50 (17.93)% $11.625 $9.00
- ------------------------------------------------------------------------------------------------------
NET ASSET VALUE (NAV) $10.60 $11.22 (5.53)% $11.32 $10.60
- ------------------------------------------------------------------------------------------------------
</TABLE>

THE FIXED INCOME MARKETS

The U.S. economy sustained its growth during the past twelve months, as
U.S. exports and manufacturing continued to rebound. Additionally, consumer
strength remains an important contributor to economic growth as low unemployment
and rising incomes fuel domestic demand. After lowering interest rates three
times in the second half of 1998, and despite inflation concerns as measured by
CPI and PPI remaining relatively benign, the Federal Reserve (the "Fed") adopted
a tightening bias and raised its target for the Federal funds rate from 4.75% to
5.50% between June and November 1999. In a statement accompanying the latest
tightening on November 16, it was indicated that the Fed believes that growth
"continues in excess of the economy's growth potential"; nevertheless, the Fed
reversed its tightening stance by adopting a neutral bias.

U.S. Treasury yields rose dramatically during 1999, with the yield of the
30-year Treasury increasing by 139 basis points to close the year at 6.48%. Bond
prices, which move inversely to their yields, were punished by the constant
threat of inflation in response to the strong economic data and the market's
uncertainty over the Fed's policy throughout the year. Recently, a weaker
dollar, higher commodity prices and strong gains in the U.S. and European equity
markets have depressed overall demand for fixed income securities.

2
<PAGE>

Municipals underperformed the taxable market during the year, posting a
pre-tax -2.07% total return as measured by the LEHMAN MUNICIPAL BOND INDEX
versus the LEHMAN AGGREGATE'S -0.83%. As interest rates rose to their highest
level in four years during the third quarter of 1999, retail demand for
municipal securities increased dramatically. This rise in municipal interest
rates is directly related to the increase of alternative taxable investment
spreads over Treasuries. Currently, municipals are substantially cheaper than
their long-term average valuations as compared to Treasuries. Unlike the taxable
market, which witnessed a surge of supply by issuers trying to avoid potential
year-end market dislocations due to Y2K, the volume of new municipal issuance is
down significantly from 1998's pace, creating a positive technical environment.
We believe that the current market environment offers some of the most
attractive investment opportunities in municipals in the last few years.

THE TRUST'S PORTFOLIO AND INVESTMENT STRATEGY

The Trust's portfolio is managed to diversify exposure to various sectors,
issuers, revenue sources and types of bonds. BlackRock's investment strategy
emphasizes a relative value approach, which allows the Trust to capitalize upon
changing market conditions by rotating municipal sectors and coupons.
Additionally, the Trust emphasizes securities whose maturity dates match the
termination date of the Trust.

Over the year, trading activity in the Trust remained relatively low, as
many of the securities in the Trust's portfolio continued to trade at prices
above where they were purchased. As trading activity that results in the Trust
realizing a capital gain could require a taxable distribution, we continue to
believe that waiting to restructure the portfolio in a higher interest rate
environment is the most prudent portfolio management strategy. At present, we
are confident that the Trust is on schedule to achieve its primary investment
objective of returning $10 per share upon termination and will continue to seek
investment opportunities in the municipal market.

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

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THE BLACKROCK INSURED MUNICIPAL TERM TRUST INC.
----------------------------------------------------------------------------
SECTOR DECEMBER 31, 1999 DECEMBER 31, 1998
----------------------------------------------------------------------------
City, County and State 23% 24%
----------------------------------------------------------------------------
Hospital 16% 17%
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Water & Sewer 16% 15%
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Utility/Power 12% 11%
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Education 12% 11%
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Tax Revenue 6% 7%
----------------------------------------------------------------------------
Lease Revenue 6% 6%
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Transportation 4% 4%
----------------------------------------------------------------------------
Housing 3% 3%
----------------------------------------------------------------------------
Miscellaneous Revenue 2% 2%
----------------------------------------------------------------------------

3
<PAGE>

As a result of an internal reorganization, effective January 1, 2000,
BlackRock Advisors, Inc has replaced BlackRock Financial Management, Inc., a
wholly-owned subsidiary of BlackRock Advisors, Inc. as the Advisor of the Trust.
The investment management and other personnel responsible for providing services
to the Trust did not change as a result of the reorganization. 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 Advisors, Inc. BlackRock Advisors, 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 12/31/99: $9.4375
- --------------------------------------------------------------------------------
Net Asset Value as of 12/31/99: $10.60
- --------------------------------------------------------------------------------
Yield on Closing Stock Price as of 12/31/99 ($9.4375)1: 6.62%
- --------------------------------------------------------------------------------
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, 1999
- ------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPTION CALL
RATING* AMOUNT PROVISIONS+ VALUE
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LONG-TERM INVESTMENTS--145.2%
ALABAMA--1.1%
AAA $ 3,000++ Mobile Cnty., G.O., 6.70%, 2/01/00, MBIA N/A $ 3,065,520
-----------
ARIZONA--1.6%
AAA 4,180 University of Arizona Med. Ctr. Hosp. Rev., 6.25%, 7/01/10, MBIA ........... 7/02 @ 102 4,379,762
-----------
CALIFORNIA--10.5%
California St., G.O., FGIC,
AAA 4,355++ 6.80%, 11/01/04 .......................................................... N/A 4,820,724
AAA 145 6.80%, 11/01/10 .......................................................... 11/04 @ 102 159,004
AAA 3,400++ California St. Pub. Wks., 6.60%, 12/01/02, AMBAC ........................... N/A 3,652,008
AAA 6,100 Contra Costa Trans. Auth., 6.50%, 3/01/09, FGIC ............................ ETM 6,366,143
AAA 3,500 Eastern. Mun. Wtr. Dist., 6.50%, 7/01/09, FGIC ............................. 7/01 @ 101 3,618,650
AAA 3,065 Los Angeles Cnty. Leasing Corp., 6.05%, 12/01/10, AMBAC .................... No Opt. Call 3,286,324
AAA 3,000++ San Francisco Bay Area Rapid Trans., 6.75%, 7/01/00, AMBAC ................. N/A 3,099,420
AAA 3,500 Sonoma Cnty. Correct. Fac., C.O.P., 6.10%, 11/15/12, AMBAC ................. 11/02 @ 102 3,687,915
-----------
28,690,188
-----------
DISTRICT OF COLUMBIA--1.3%
AAA 3,500++ District of Columbia, G.O., Ser. A, 6.875%, 6/01/00, MBIA .................. N/A 3,607,240
-----------
FLORIDA--9.3%
AAA 10,750++ Broward Cnty. Sch. Bd., 6.50%, 7/01/02, AMBAC .............................. N/A 11,424,993
AAA 12,195 Jacksonville Excise Tax Rev., 6.50%, 10/01/10, AMBAC ....................... 10/02 @ 102 12,911,578
AAA 1,000 Volusia Cnty. Edl. Fac., 6.50%, 10/15/10, CONNIE LEE ....................... 10/02 @ 102 1,059,280
-----------
25,395,851
-----------
GEORGIA--1.9%
AAA 5,000 Henry Cnty. Hosp. Auth. Rev., 6.375%, 7/01/09, FGIC ........................ 7/02 @ 102 5,224,650
-----------
ILLINOIS--13.2%
AAA 1,645 Chicago, Res. Mtg. Rev., Zero Coupon, 10/01/09, MBIA ....................... No Opt. Call 837,601
Cook Cnty., G.O., MBIA,
AAA 7,000++ Ser. A, 6.50%, 11/15/02 .................................................. N/A 7,465,430
AAA 4,500++ 7.00%, 11/01/00 .......................................................... N/A 4,691,880
AAA 5,000++ Cook Cnty., Community Schs., 6.50%, 1/01/02, FGIC .......................... N/A 5,173,750
AAA 5,000++ Illinois Edl. Fac. Auth. Rev., 5.70%, 7/01/05, FGIC ........................ N/A 5,090,250
Illinois Hlth. Fac. Auth. Rev., FGIC,
AAA 3,000++ Ser. A, 6.75%, 1/01/00 ................................................... N/A 3,060,000
AAA 1,750++ Ser. C, 6.75%, 1/01/00 ................................................... N/A 1,785,000
AAA 7,980 Kendell Kane & Will Cnty. Sch. Dist., 6.25%, 9/01/11, FGIC ................. 9/01 @ 100 8,135,929
-----------
36,239,840
-----------
INDIANA--3.1%
AAA 1,340 Columbus Sch. Bd., Ser. A, 6.625%, 7/01/11, AMBAC .......................... 7/02 @ 102 1,412,440
AAA 3,750 Indiana St. Edl. Fac. Auth. Rev., Ser. A, 6.60%, 1/01/11, MBIA ............. 1/02 @ 102 3,911,325
AAA 3,000++ Monroe Cnty. Hosp. Auth. Rev., Bloomington Hosp., 6.65%, 5/01/02, MBIA ..... N/A 3,156,000
-----------
8,479,765
-----------
</TABLE>

See Notes to Financial Statements.

<PAGE>

- ------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPTION CALL
RATING* AMOUNT PROVISIONS+ VALUE
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LOUISIANA--6.6%
AAA $14,385++ Louisiana St., G.O., Ser. A, 6.50%, 5/01/02, AMBAC, ...................... N/A $ 15,215,302
AAA 2,905++ New Orleans Pub. Impt., G.O., 6.60%, 9/01/02, FGIC ....................... N/A 3,043,278
-----------
18,258,580
-----------
MASSACHUSETTS--16.4%
AAA 2,100++ Boston, G.O., Ser. A, 6.50%, 7/01/02, AMBAC .............................. N/A 2,212,518
Massachusetts St., G.O.,
AAA 7,865++ Ser. C, 6.70%, 11/01/04, FGIC .......................................... N/A 8,584,647
AAA 780++ Ser. C, 6.75%, 8/01/01, AMBAC .......................................... N/A 821,839
AAA 440 Ser. C, 6.75%, 8/01/09, AMBAC .......................................... 8/01 @ 102 461,336
AAA 2,350++ Ser. D, 6.00%, 7/01/01, MBIA ........................................... N/A 2,402,396
Massachusetts St. Hlth. & Edl. Fac. Auth. Rev., Ser. C,
AAA 2,000++ 6.50%, 7/01/02, FGIC ................................................... N/A 2,125,580
AAA 3,250++ 7.25%, 7/01/00, MBIA ................................................... N/A 3,363,555
Massachusetts St. Hlth. & Edl. Facs. Auth. Rev., So. Shore Hosp.,
AAA 3,275++ Ser. D, 6.50%, 7/01/02, MBIA ........................................... N/A 3,480,637
AAA 1,725 Ser. D, 6.50%, 7/01/10, MBIA ........................................... No Opt. Call 1,818,668
Massachusetts St. Hsg. Fin. Agcy., FNMA,
AAA 5,000 Ser. H, 6.75%, 11/15/12 ................................................ 11/03 @ 102 5,230,300
AAA 5,500 Residential Dev., Ser. A, 6.875%, 11/15/11 ............................. 5/02 @ 102 5,805,470
AAA 600 Residential Dev., Ser. C, 6.875%, 11/15/11 ............................. 5/02 @ 102 633,324
AAA 7,630 Massachusetts St. Wtr. Res., Ser. B, 6.25%, 11/01/10, MBIA ............... 11/02 @ 102 8,022,640
-----------
44,962,910
-----------
MICHIGAN--4.0%
AAA 2,375++ Chippewa Valley, Sch. Bldg. & Site Rev., 6.375%, 5/01/01, FGIC ........... N/A 2,464,324
AAA 900 Michigan Mun. Bd. Auth. Rev., Ser. A, 6.50%, 11/01/12, MBIA .............. 11/02 @ 102 950,211
Michigan Mun. Bd. Auth. Rev., Ser. G, AMBAC,
AAA 1,310++ 6.45%, 11/01/04 ........................................................ N/A 1,423,394
AAA 730 6.45%, 11/01/07 ........................................................ 11/04 @ 102 781,487
AAA 1,320++ 6.65%, 11/01/04 ........................................................ N/A 1,445,505
AAA 730 6.65%, 11/01/09 ........................................................ 11/04 @ 102 783,429
AAA 3,000 Western Township Util. Auth. Swr. Dist. Sys. Rev., 6.50%, 1/01/10, FSA ... 1/02 @ 100 3,075,600
-----------
10,923,950
-----------
MISSISSIPPI--0.7%
AAA 1,800 Harrison Cnty. Waste Wtr. Mgmt., 6.75%, 2/01/11, FGIC .................... 2/01@ 102 1,864,242
-----------
NEVADA--7.1%
AAA 5,215++ Clark Cnty. Arpt., 6.25%, 6/01/01, FGIC .................................. N/A 5,343,393
AAA 4,000++ Clark Cnty., G.O., Ser. A, 6.50%, 6/01/02, AMBAC ......................... N/A 4,240,800
Clark Cnty. Sch. Dist.,
AAA 4,185++ 6.75%, 12/15/04, FGIC .................................................. N/A 4,575,293
AAA 5,175++ Ser. A, 7.00%, 6/01/01, MBIA ........................................... N/A 5,403,373
-----------
19,562,859
-----------
NEW JERSEY--0.8%
AAA 2,000 Hudson Cnty. Correct. Fac., C.O.P., 6.50%, 12/01/11, MBIA ................ 6/02 @ 101.5 2,096,040
-----------
NEW YORK--11.2%
AAA 4,500++ New York City, G.O., Ser. B, 6.95%, 8/15/04, MBIA ........................ N/A 4,933,755
New York St. Env. Fac. Corp. P.C.R.,
AAA 6,155 6.70%, 5/15/09 ......................................................... 11/04 @ 102 6,709,812
AAA 4,965 6.80%, 5/15/10 ......................................................... 11/04 @ 102 5,426,993

</TABLE>

See Notes to Financial Statements.

6
<PAGE>

- ------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPTION CALL
RATING* AMOUNT PROVISIONS+ VALUE
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW YORK--(CONTINUED)
New York St. Medicare Fac. Rev., AMBAC,
AAA $ 9,715++ 6.60%, 2/15/05 N/A $ 10,609,460
AAA 2,695++ 6.625%, 2/15/05 N/A 2,946,147
-----------
30,626,167
-----------
OHIO--6.1%
AAA 12,000++ Cleveland Wtrwks. Rev., First Mtg., Ser. F, 6.50%, 1/01/02, AMBAC, ....... N/A 12,643,080
AAA 3,900 Lucas Cnty. Hosp. Impt. Rev., St. Vincent Med. Ctr.,
6.50%, 8/15/12, MBIA ................................................... 8/02 @ 102 4,116,723
-----------
16,759,803
-----------
OKLAHOMA--2.2%
AAA 5,725 Oklahoma City Wtr. Util. Tr., Wtr. & Sewer. Rev., Ser. B, 6.375%,
7/01/12, MBIA .......................................................... 7/02 @ 100 5,921,940
-----------
PENNSYLVANIA--6.1%
AAA 5,000 Dauphin Cnty. Gen. Auth. Hosp. Rev., 6.25%, 7/01/08, MBIA ................ 7/02 @ 102 5,224,600
AAA 2,100 Philadelphia Wtr. & Waste Rev., Ser. A, 5.625%, 6/15/08, AMBAC ........... No Opt. Call 2,157,666
AAA 6,005++ Pittsburgh, G.O., Ser. D, 6.00%, 9/01/02, AMBAC .......................... N/A 6,308,133
AAA 3,000++ Pittsburgh Wtr. & Swr., 6.75%, 9/01/01, FGIC ............................. N/A 3,163,530
-----------
16,853,929
-----------
RHODE ISLAND--4.6%
Rhode Island Clean Wtr. Protn. Fin. Agcy., P.C.R., Revolving Fd.
Pooled Ln., Issue A, MBIA,
AAA 2,155++ 6.70%, 10/01/02 ........................................................ N/A 2,304,040
AAA 235 6.70%, 10/01/10 ........................................................ 10/02 @ 102 248,197
AAA 10,000++ Rhode Island St. Pub. Bldgs. Auth., St. Pub. Proj. Rev., Ser. A,
6.75%, 2/01/00, AMBAC .................................................. N/A 10,218,400
-----------
12,770,637
-----------
SOUTH CAROLINA--8.6%
Piedmont Mun. Pwr. Agcy. Elec. Rev.,
AAA 14,925 6.30%, 1/01/11, MBIA ................................................... 1/03 @ 102 15,586,327
AAA 7,900 6.50%, 1/01/11, FGIC ................................................... 1/01 @ 102 8,147,902
-----------
23,734,229
-----------
TEXAS--17.5%
Austin Util. Sys. Rev. Comb., Ser A., FGIC,
AAA 7,475++ 6.00%, 5/15/00 ......................................................... N/A 7,528,671
AAA 1,055 6.00%, 5/15/10 ......................................................... 5/00 @ 100 1,058,249
AAA 1,580 Dallas Cnty. Road Imp., G.O., 5.625%, 8/15/10 ............................ 8/01 @ 100 1,593,793
AAA 2,500 Dallas Ft. Worth Regl. Arpt. Rev., Ser. A, 7.375%, 11/01/10, FGIC ........ 5/04 @ 102 2,771,450
AAA 8,000 El Paso Impt. Auth. Rev., G.O., Ser. A, 6.375%, 8/15/10, FGIC ............ No Opt. Call 8,287,360
Harris Cnty., Toll Road, FGIC,
AAA 2,585 Ser. B, Zero Coupon, 8/15/08 ........................................... No Opt. Call 1,630,541
AAA 6,310++ Sr. Lien, Ser. A, 6.50%, 8/15/02 ....................................... N/A 6,710,306
AAA 4,775 Sr. Lien, Ser. A, 6.50%, 8/15/11 ....................................... 8/02 @ 102 5,030,701
AAA 10,440 Houston Wtr. & Swr. Sys., Ser. C, Zero Coupon, 12/01/10, AMBAC ........... No Opt. Call 5,733,648
AAA 1,840++ North Texas Mun. Wtr. Dist., 6.50%, 6/01/03, MBIA ........................ N/A 1,941,826
AAA Texas Mun. Pwr. Agcy., Rev., Ser. A,
4,000 5.50%, 9/01/10, MBIA ................................................... N/A 4,062,440
1,500 6.75%, 9/01/12, AMBAC .................................................. 9/01 @ 102 1,570,200
-----------
47,919,185
-----------
</TABLE>

See Notes to Financial Statements.

7
<PAGE>

- -------------------
* Using the higher of Standard & Poor's or Moody'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.
++ This bond is prerefunded. See glossary for definition.

- ---------------------------------------------------------------------------------------------------------------------------
THE FOLLOWING ABBREVIATIONS ARE USED IN PORTFOLIO DESCRIPTIONS:
<S> <C> <C> <C>
AMBAC-- American Municipal Bond Assurance Corporation FNMA-- Federal National Mortgage Association
CONNIELEE -- College Construction Loan Insurance Association FSA-- Financial Security Assurance
C.O.P.-- Certificate of Participation MBIA-- Municipal Bond Insurance Association
ETM-- Escrowed to Maturity P.C.R.-- Pollution Control Revenue
FGIC-- Financial Guaranty Insurance Company
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>

See Notes to Financial Statements.

<PAGE>

- -------------------------------------------------------------------------
THE BLACKROCK INSURED
MUNICIPAL TERM TRUST INC.
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
- -------------------------------------------------------------------------

ASSETS
Investments, at value (cost $374,823,787)
(Note 1) ............................................ $398,391,028
Cash .................................................. 19,211
Interest receivable ................................... 7,624,795
Other assets .......................................... 13,602
------------
406,048,636
------------
LIABILITIES
Dividends payable--common stock ....................... 1,348,124
Investment advisory fee payable (Note 2) .............. 120,957
Dividends payable--preferred stock .................... 73,689
Administration fee payable (Note 2) ................... 34,559
Other accrued expenses ................................ 151,758
------------
1,729,087
------------
NET INVESTMENT ASSETS ................................. $404,319,549
============
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 ................. 10,984,368
Accumulated net realized loss ....................... (324,604)
Net unrealized appreciation ......................... 23,567,241
------------
Net investment assets, December 31, 1999 ............ $404,319,549
============
Net assets applicable to common shareholders ........ $274,319,549
============
Net asset value per common share:
($274,319,549O25,885,639 shares of
common stock issued and outstanding) ................ $10.60
======

- -------------------------------------------------------------------------
THE BLACKROCK INSURED
MUNICIPAL TERM TRUST INC.
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1999
- -------------------------------------------------------------------------

NET INVESTMENT INCOME
Income
Interest and discount earned ........................ $24,654,568
-----------
Operating expenses
Investment advisory ................................. 1,450,519
Administration ...................................... 414,434
Auction agent ....................................... 325,000
Custodian ........................................... 111,000
Reports to shareholders ............................. 77,000
Directors ........................................... 73,000
Independent accountants ............................. 45,000
Registration ........................................ 32,000
Transfer agent ...................................... 31,000
Legal ............................................... 29,000
Miscellaneous ....................................... 91,255
-----------
Total expenses ...................................... 2,679,208
-----------
Net investment income ................................. 21,975,360
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain on investments ...................... 27,290
Net change in unrealized appreciation on
investments ......................................... (17,696,367)
-----------
Net loss on investments ............................... (17,669,077)
-----------
NET INCREASE IN NET INVESTMENT
ASSETS RESULTING FROM OPERATIONS ...................... $4,306,283
===========

See Notes to Financial Statements.

9
<PAGE>

- ---------------------------------------------------------------------------------------------------------------------------
THE BLACKROCK INSURED MUNICIPAL TERM TRUST INC.
STATEMENTS OF CHANGES IN NET INVESTMENT ASSETS
- ---------------------------------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
----------------------------
1999 1998
----------- -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET INVESTMENT ASSETS
Operations:
Net investment income ........................................................... $21,975,360 $ 21,924,387
Net realized gain on investments ................................................ 27,290 16,839
Net change in unrealized appreciation on investments ............................ (17,696,367) (813,183)
----------- -----------
Net increase in net investment assets resulting from operations ................. 4,306,283 21,128,043
----------- -----------
Dividends:
To common shareholders from net investment income ............................... (16,177,181) (16,177,201)
To preferred shareholders from net investment income ............................ (4,278,809) (4,443,277)
----------- -----------
Total dividends ................................................................. (20,455,990) (20,620,478)
----------- -----------
Total increase (decrease) ..................................................... (16,149,707) 507,565
----------- -----------
NET INVESTMENT ASSETS
Beginning of year ................................................................. 420,469,256 419,961,691
----------- -----------
End of year (including undistributed net investment income of
$10,984,368 and $9,464,998, respectively) ....................................... $404,319,549 $420,469,256
=========== ===========
</TABLE>

See Notes to Financial Statements.

<PAGE>

- ---------------------------------------------------------------------------------------------------------------------------
THE BLACKROCK INSURED MUNICIPAL TERM TRUST INC.
FINANCIAL HIGHLIGHTS
- ---------------------------------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
----------------------------------------------------------
1999 1998 1997 1996 1995
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year .......................... $ 11.22 $ 11.20 $ 10.87 $ 11.02 $ 9.73
-------- -------- -------- -------- --------
Net investment income ....................................... .85 .85 .84 .83 .84
Net realized and unrealized gain (loss) on investments ...... (.68) (.03) .29 (.18) 1.27
-------- -------- -------- -------- --------
Net increase from investment operations ..................... .17 .82 1.13 .65 2.11
-------- -------- -------- -------- --------
Dividends from net investment income to:
Common shareholders ....................................... (.62) (.62) (.62) (.62) (.62)
Preferred shareholders .................................... (.17) (.18) (.18) (.18) (.20)
-------- -------- -------- -------- --------
Total dividends ............................................. (.79) (.80) (.80) (.80) (.82)
-------- -------- -------- -------- --------
Net asset value, end of year* ............................... $ 10.60 $ 11.22 $ 11.20 $ 10.87 $ 11.02
======= ======== ======== ======== ========
Market value, end of year* .................................. $ 9.44 $ 11.50 $ 11.00 $ 10.13 $ 10.00
======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN ..................................... (12.92) 10.53% 15.22% 7.59% 25.31%
======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS OF
COMMON SHAREHOLDERS:
Expenses++ .................................................. .94% .93% .94% .97% .96%
Net investment income before preferred stock dividends++ .... 7.74% 7.56% 7.66% 7.66% 7.97%
Preferred stock dividends ................................... 1.51% 1.53% 1.62% 1.61% 1.87%
Net investment income available to common shareholders ...... 6.23% 6.03% 6.04% 6.05% 6.10%

SUPPLEMENTAL DATA:
Average net assets of common shareholders (in thousands) .... $284,075 $290,004 $283,531 $281,521 $272,868
Portfolio turnover rate ..................................... 0% 0% 1% 1% 1%
Net assets of common shareholders, end of year (in thousands) $274,320 $290,469 $289,962 $281,470 $285,226
Preferred stock outstanding (in thousands) .................. $130,000 $130,000 $130,000 $130,000 $130,000
Asset coverage per share of preferred stock,
end of year ............................................... $ 77,768 $ 80,868 $ 80,768 $ 79,132 $ 79,898
</TABLE>

- --------------------
* Net asset value and market value are published in BARRON'S each Saturday
and THE WALL STREET JOURNAL on Monday.
+ 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 year reported. Dividends are
assumed, for purposes of this calculation, to be reinvested at prices
obtained under the Trust's dividend reinvestment plan. Total investment
return does not reflect brokerage commissions.
++ Ratios calculated on the basis of income and expenses applicable to both
the common and preferred stock, relative to the average net assets of
common stockholders.

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. ORGANIZATION & The BlackRock Insured Municipal Term Trust Inc.
ACCOUNTING (the "Trust"), was organized in Maryland on
POLICIES 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 dealers or pricing services approved by the Trust's Board of
Directors. In determining the value of a particular security, pricing services
may use certain information with respect to transactions in such securities,
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 having a remaining maturity of 60 days or less are
valued at amortized cost, which approximates market value.

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 and amortizes
premium 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 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
"Advisor"), a wholly-owned subsidiary of BlackRock Advisors, Inc., which is a
wholly-owned subsidiary of BlackRock, inc., which in turn is an indirect
majority-owned subsidiary of PNC Bank Corp. The Trust has an Administration
Agreement with Mitchell Hutchins Asset Management Inc. (the "Administrator"),
which is a wholly-owned subsidiary of PaineWebber Incorporated.

The investment advisory fee paid to the Advisor 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 Advisor provides continuous supervision of
the investment portfolio and pays the compensation of officers of the Trust who
are affiliated persons of the Advisor. The Administrator pays occupancy and
certain clerical and accounting costs of the Trust. The Trust bears all other
costs and expenses.

12
<PAGE>

NOTE 3. PORTFOLIO Purchases and sales of investment securities,
SECURITIES other than short-term investments, for the year
ended December 31, 1999 aggregated $5,325,920 and
$1,174,440, respectively.

The federal income tax basis of the Trust's investments at December 31, 1999
was the same as the basis for financial reporting, and accordingly, net
unrealized appreciation for federal income tax purposes was $23,567,241 (gross
unrealized appreciation--$23,651,465; gross unrealized depreciation--$84,224).

For federal income tax purposes, the Trust had a capital loss carryforward at
December 31, 1999 of approximately $325,000 of which $279,000 will expire in
2003 and $46,000 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 December 31, 1999, the Advisor owned 10,583 shares. As of
December 31, 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 2.40% to 5.03% for the year ended December 31, 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 stock, voting separately as a class would be required to
(a) adopt any plan of reorganization that would adversely affect the preferred
stock, 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, 1999, the Board of
Directors of the Trust declared dividends from
undistributed earnings of $0.05208 per common share payable February 1, 2000 to
shareholders of record on January 14, 2000.

For the period January 1, 2000 through January 31, 2000, dividends declared
on preferred shares totalled $446,208 in aggregate for the two outstanding
preferred share series.

13
<PAGE>

NOTE 6. SUBSEQUENT Subsequent to year-end, the Trust will be
EVENT issuing 1,616 shares of Auction Rate Municipal
Preferred Stock, series M7, at an aggregate
offering price of $40,400,000. The liquidation preference of each share is
$25,000 plus accumulated but unpaid dividends. The estimated net proceeds of the
offering are $39,696,000 after payment of offering expenses and the underwriting
discount. Except for the initial dividend rate and the length of the initial
dividend period for the new preferred shares, the rights and preferences of the
new preferred shares are the same as the trust's outstanding series M7 preferred
shares.

<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, including
the portfolio of investments, of The BlackRock Insured Municipal Term Trust
Inc., as of December 31, 1999, and the related statement of operations for the
year then ended, and of the statements 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, 1999, 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, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
BlackRock Insured Municipal Term Trust Inc. as of December 31, 1999, the results
of its operations, the changes in its net assets and financial highlights for
the respective stated periods in conformity with generally accepted accounting
principles.

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

New York, New York
February 11, 2000

15
<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 tax year end 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
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 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
Stock Exchange for the participants' accounts. The Trust will not issue any new
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 income tax 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 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 Plan
Agent at (800) 699-1BFM. 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.

We have transitioned into the Year 2000, and it is business as usual at
BlackRock.

<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 Advisors, Inc. (the "Advisor") is an SEC-registered investment
advisor. As of December 31, 1999, the Advisor and its affiliates (together,
"BlackRock") managed $165 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-two closed-end funds that are traded on either the New
York or American stock exchanges, and a $27 billion family of open-end funds.
Blackrock manages over 580 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 Advisor to be of comparable credit quality (guaranteed, escrowed, or backed
in trust).

WHAT IS THE ADVISOR'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 Advisor
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 to enhance the income of the portfolio. In order to maintain
competitive yields as the Trust approaches maturity and depending on market
conditions, the Advisor 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 first 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.

17
<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.

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. The Advisor'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 the Advisor 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 INSUREDMUNICIPAL 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 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

DIRECTORS
Laurence D. Fink, CHAIRMAN
Andrew F. Brimmer
Richard E. Cavanagh
Kent Dixon
Frank J. Fabozzi
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 ADVISOR
BlackRock Advisors, Inc.
400 Bellevue Parkway
Wilmington, DE 19809
(800) 227-7BFM

ADMINISTRATOR
Mitchell Hutchins Asset Management Inc.
51 West 52nd Street
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
Four Times Square
New York, NY 10036

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.
51 West 52nd Street
New York, NY10019
(800) 227-7BFM

THE
BLACKROCK
INSURED MUNICIPAL TERM TRUST INC.
==================================
ANNUAL REPORT
DECEMBER 31, 1999

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