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SIGNATURE JULIAN SLUYTERS
TITLE TREASURER
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<CIK> 0000897802
<NAME> INSURED MUNICIPAL INCOME FUND INC.
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Board of Directors
Insured Municipal Income Fund Inc.
In planning and performing our audit of the financial statements of
Insured Municipal Income Fund Inc. for the year ended March 31, 1996,
we considered its internal control structure, including procedures for
safeguarding securities, in order to determine our auditing procedures
for the purpose of expressing our opinion on the financial statements and
to comply with the requirements of Form N-SAR, not to provide assurance on
the internal control structure.
The management of Insured Municipal Income Fund Inc. is responsible for
establishing and maintaining an internal control structure. In fulfilling
this responsibility, estimates and judgments by management are required to
assess the expected benefits and related costs of internal control structure
policies and procedures. Two of the objectives of an internal control
structure are to provide management with reasonable, but not absolute,
assurance that assets are safeguarded against loss from unauthorized use or
disposition and that transactions are executed in accordance with
management's authorization and recorded properly to permit preparation
of financial statements in conformity with generally accepted accounting
principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and not be detected. Also, projection of any
evaluation of the structure to future periods is subject to the risk that it
may become inadequate because of changes in conditions or that the
effectiveness of the design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control structure elements does not reduce
to a relatively low level the risk that errors or irregularities in amounts
that would be material in relation to the financial statements being audited
may occur and not be detected within a timely period by employees in the
normal course of performing their assigned functions. However, we noted no
matters involving the internal control structure, including procedures for
safeguarding securities, that we consider to be material weaknesses as defined
above as of March 31, 1996.
This report is intended solely for the information and use of management and
the Securities and Exchange Commission.
ERNST & YOUNG LLP
May 14, 1996
For the period ended March 31, 1996 Exhibit 77Q(2)
File Number 811-7528
Insured Municipal Income Fund Inc.
A Form 3 was filed late by the following directors/officers as
required by Section 16(a) of the Exchange Act during the
most recent or prior fiscal years.
Number of transactions
Number of Not Reported on Timely
Name Position with Fund Late Reports* Basis
Margo N. Alexander President 1 0
Richard Q. Armstrong Director 1 0
Richard R. Burt Director 1 0
C. William Maher Vice President & 1 0
Asst. Treasurer
Paul H. Schubert Vice President & 1 0
Asst. Treasurer
Dennis McCauley Vice President 1 0
* Each report related solely to such person having been elected an officer
of the Fund.
A Form 4 was filed late by the following officers as required by Section 16(a)
of the Exchange Act during the most recent or prior fiscal years.
Number of Number of Transactions Not
Name Position with Fund Late Reports* Reported on Timely Basis
John R. Torell III Director 1 1
