Form N-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q


QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number         811-7492         

        Nuveen Insured California Premium Income Municipal Fund 2, Inc.         
(Exact name of registrant as specified in charter)

Nuveen Investments
        333 West Wacker Drive, Chicago, Illinois 60606         
(Address of principal executive offices) (Zip code)


Kevin J. McCarthy Vice President and Secretary
        333 West Wacker Drive, Chicago, Illinois 60606         
(Name and address of agent for service)

Registrant's telephone number, including area code:         312-917-7700        

Date of fiscal year end:            2/28          

Date of reporting period:         5/31/09         

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Schedule of Investments

    Portfolio of Investments (Unaudited)             
    Nuveen Insured California Premium Income Municipal Fund 2, Inc. (NCL)             
    May 31, 2009             
Principal        Optional Call         
Amount (000)    Description (1)    Provisions (2)    Ratings (3)    Value 
    Education and Civic Organizations – 5.6% (3.6% of Total Investments)             
$        620    California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series    11/10 at 100.00    A2   $   628,959 
     2000, 5.875%, 11/01/20 – MBIA Insured             
1,250    California Educational Facilities Authority, Student Loan Revenue Bonds, Cal Loan Program,    9/09 at 101.00    Baa1    1,216,513 
     Series 2001A, 5.400%, 3/01/21 – MBIA Insured (Alternative Minimum Tax)             
1,500    California State University, Systemwide Revenue Bonds, Series 2005A, 5.000%, 11/01/25 –    5/15 at 100.00    Aa3    1,526,850 
     AMBAC Insured             
6,000    University of California, Revenue Bonds, Multi-Purpose Projects, Series 2003A,    5/13 at 100.00    Aa1    6,088,080 
     5.000%, 5/15/27 – AMBAC Insured (UB)             
9,370    Total Education and Civic Organizations            9,460,402 
    Health Care – 2.2% (1.4% of Total Investments)             
1,410    California Statewide Communities Development Authority, Revenue Bonds, Saint Joseph Health    7/18 at 100.00    AAA    1,308,677 
     System, Trust 2554, 18.389%, 7/01/47 – FSA Insured (IF)             
2,000    The Regents of the University of California, Medical Center Pooled Revenue Bonds, Series    5/15 at 101.00    Aa2    1,784,020 
     2007A, 4.500%, 5/15/37 – MBIA Insured             
650    University of California, Hospital Revenue Bonds, UCLA Medical Center, Series 2004A, 5.500%,    5/12 at 101.00    A    651,515 
     5/15/18 – AMBAC Insured             
4,060    Total Health Care            3,744,212 
    Housing/Single Family – 2.1% (1.4% of Total Investments)             
345    California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006H, 5.750%,    2/16 at 100.00    Aa2    345,838 
     8/01/30 – FGIC Insured (Alternative Minimum Tax)             
2,170    California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006K, 5.500%,    2/16 at 100.00    Aaa    2,130,419 
     2/01/42 – AMBAC Insured (Alternative Minimum Tax)             
1,100    California Housing Finance Agency, Single Family Mortgage Bonds, Series 1997C-2-II, 5.625%,    8/09 at 100.00    AA    1,101,331 
     8/01/20 – MBIA Insured (Alternative Minimum Tax)             
3,615    Total Housing/Single Family            3,577,588 
    Tax Obligation/General – 25.0% (16.3% of Total Investments)             
1,460    ABC Unified School District, Los Angeles County, California, General Obligation Bonds, Series    8/10 at 101.00    AA–    1,545,308 
     2000B, 5.750%, 8/01/16 – FGIC Insured             
1,425    Bassett Unified School District, Los Angeles County, California, General Obligation Bonds,    8/16 at 100.00    AA–    1,423,091 
     Series 2006B, 5.250%, 8/01/30 – FGIC Insured             
3,000    California State, General Obligation Bonds, Series 2006, 4.500%, 9/01/36 – FSA Insured    9/16 at 100.00    AAA    2,539,050 
4,400    California, General Obligation Bonds, Series 2003, 5.000%, 2/01/31 – MBIA Insured    2/13 at 100.00    AA–    4,112,504 
3,000    California, General Obligation Veterans Welfare Bonds, Series 2001BZ, 5.375%, 12/01/24 – MBIA    6/09 at 100.00    AA–    2,863,950 
     Insured (Alternative Minimum Tax)             
3,200    Coast Community College District, Orange County, California, General Obligation Bonds, Series    8/18 at 100.00    AAA    2,633,888 
     2006C, 0.000%, 8/01/31 – FSA Insured             
2,210    Fontana Unified School District, San Bernardino County, California, General Obligation Bonds,    8/18 at 100.00    AAA    2,375,816 
     Trust 2668, 8.739%, 8/01/28 – FSA Insured (IF)             
1,255    Los Angeles Community College District, Los Angeles County, California, General Obligation    8/15 at 100.00    AAA    1,297,155 
     Bonds, Series 2005A, 5.000%, 8/01/24 – FSA Insured             
4,000    Los Angeles Unified School District, Los Angeles County, California, General Obligation Bonds,    7/17 at 100.00    AAA    3,926,800 
     Series 2007A, 4.500%, 7/01/24 – FSA Insured             
    Los Rios Community College District, Sacramento, El Dorado and Yolo Counties, California,             
    General Obligation Bonds, Series 2006C:             
2,110     5.000%, 8/01/21 – FSA Insured (UB)    8/14 at 102.00    AAA    2,258,396 
3,250     5.000%, 8/01/22 – FSA Insured (UB)    8/14 at 102.00    AAA    3,522,513 
3,395     5.000%, 8/01/23 – FSA Insured (UB)    8/14 at 102.00    AAA    3,638,897 
1,270    Merced City School District, Merced County, California, General Obligation Bonds, Series 2004,    8/13 at 100.00    AA–    1,302,576 
     5.000%, 8/01/22 – FGIC Insured             
305    Roseville Joint Union High School District, Placer County, California, General Obligation    8/15 at 100.00    AA–    309,834 
     Bonds, Series 2006B, 5.000%, 8/01/27 – FGIC Insured             
2,500    Sacramento City Unified School District, Sacramento County, California, General Obligation    7/15 at 100.00    Aa3    2,535,250 
     Bonds, Series 2005, 5.000%, 7/01/27 – MBIA Insured             
1,125    San Diego Unified School District, California, General Obligation Bonds, Election of 1998,    No Opt. Call    AA    619,256 
     Series 1999A, 0.000%, 7/01/21 – FGIC Insured             
2,000    San Francisco Community College District, California, General Obligation Bonds, Series 2002A,    6/10 at 102.00    Aa3    1,981,840 
     5.000%, 6/15/26 – FGIC Insured             
1,000    San Ramon Valley Unified School District, Contra Costa County, California, General Obligation    8/14 at 100.00    AAA    1,031,160 
     Bonds, Series 2004, 5.000%, 8/01/24 – FSA Insured             
2,445    Washington Unified School District, Yolo County, California, General Obligation Bonds, Series    8/13 at 100.00    AA–    2,517,128 
     2004A, 5.000%, 8/01/21 – FGIC Insured             
43,350    Total Tax Obligation/General            42,434,412 
    Tax Obligation/Limited – 60.2% (39.3% of Total Investments)             
    Anaheim Public Finance Authority, California, Subordinate Lease Revenue Bonds, Public             
    Improvement Project, Series 1997C:             
5,130     0.000%, 9/01/18 – FSA Insured    No Opt. Call    AAA    3,237,081 
8,000     0.000%, 9/01/21 – FSA Insured    No Opt. Call    AAA    4,041,440 
    California Infrastructure Economic Development Bank, Revenue Bonds, North County Center for             
    Self-Sufficiency Corporation, Series 2004:             
1,535     5.000%, 12/01/20 – AMBAC Insured    12/13 at 100.00    AA–    1,590,475 
1,780     5.000%, 12/01/23 – AMBAC Insured    12/13 at 100.00    AA–    1,821,171 
3,725    California State Public Works Board, Lease Revenue Bonds, Department of Corrections &    1/16 at 100.00    A    3,806,578 
     Rehabilitation, Series 2005J, 5.000%, 1/01/17 – AMBAC Insured             
380    Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community    9/15 at 100.00    AA–    355,304 
     Facilities District, Series 2005, 5.000%, 9/01/24 – FGIC Insured             
6,000    El Monte, California, Senior Lien Certificates of Participation, Department of Public Services    1/11 at 100.00    A    6,026,999 
     Facility Phase II, Series 2001, 5.000%, 1/01/21 – AMBAC Insured             
8,280    Fontana Public Financing Authority, California, Tax Allocation Revenue Bonds, North Fontana    10/15 at 100.00    A    7,265,451 
     Redevelopment Project, Series 2005A, 5.000%, 10/01/32 – AMBAC Insured             
4,695    Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement    6/15 at 100.00    AAA    4,023,944 
     Revenue Bonds, Drivers Trust 2091, 12.225%, 6/01/45 – AGC Insured (IF)             
2,000    Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement    6/15 at 100.00    A–    967,700 
     Revenue Bonds, Residual Series 2040, 10.020%, 6/01/45 – FGIC Insured (IF)             
    Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed             
    Revenue Bonds, Series 2005A:             
20,110     5.000%, 6/01/35 – FGIC Insured    6/15 at 100.00    A–    17,478,600 
2,345     5.000%, 6/01/38 – FGIC Insured    6/15 at 100.00    A–    2,013,087 
7,500     5.000%, 6/01/45 – FGIC Insured    6/15 at 100.00    A–    6,209,472 
1,255    Hesperia Public Financing Authority, California, Redevelopment and Housing Projects Tax    9/17 at 100.00    Baa1    906,950 
     Allocation Bonds, Series 2007A, 5.000%, 9/01/37 – SYNCORA GTY Insured             
1,700    Hesperia Unified School District, San Bernardino County, California, Certificates of    2/17 at 100.00    A    1,398,640 
     Participation, Capital Improvement, Series 2007, 5.000%, 2/01/41 – AMBAC Insured             
1,810    Kern County Board of Education, California, Certificates of Participation Refunding, Series    5/10 at 100.00    AA–    1,784,206 
     1998A, 5.200%, 5/01/28 – MBIA Insured             
5,000    La Quinta Redevelopment Agency, California, Tax Allocation Refunding Bonds, Redevelopment    9/09 at 100.00    A    4,715,150 
     Project Area 1, Series 1998, 5.200%, 9/01/28 – AMBAC Insured             
2,185    Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Manchester Social    9/15 at 100.00    A2    1,965,670 
     Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured             
1,000    Los Angeles Community Redevelopment Agency, California, Tax Allocation Bonds, Bunker Hill    12/14 at 100.00    AAA    1,003,620 
     Project, Series 2004A, 5.000%, 12/01/20 – FSA Insured             
1,250    Los Angeles County Metropolitan Transportation Authority, California, Proposition A First Tier    7/13 at 100.00    AAA    1,315,124 
     Senior Sales Tax Revenue Bonds, Series 2003B, 5.000%, 7/01/19 – MBIA Insured             
4,000    Los Angeles, California, Certificates of Participation, Municipal Improvement Corporation,    6/13 at 100.00    AA–    3,950,440 
     Series 2003AW, 5.000%, 6/01/33 – AMBAC Insured             
3,000    Los Angeles, California, Municipal Improvement Corporation, Lease Revenue Bonds, Police    1/17 at 100.00    AA–    2,825,970 
     Headquarters, Series 2006A, 4.750%, 1/01/31 – FGIC Insured             
6,120    Moreno Valley Community Redevelopment Agency, California, Tax Allocation Bonds, Series 2007A,    8/17 at 100.00    A    5,185,170 
     5.000%, 8/01/38 – AMBAC Insured             
4,140    Plumas County, California, Certificates of Participation, Capital Improvement Program, Series    6/13 at 101.00    A    3,661,455 
     2003A, 5.000%, 6/01/28 – AMBAC Insured             
390    Poway Redevelopment Agency, California, Tax Allocation Refunding Bonds, Paguay Redevelopment    12/10 at 102.00    AA    359,085 
     Project, Series 2000, 5.750%, 6/15/33 – MBIA Insured             
325    Rialto Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series    9/15 at 100.00    A–    279,598 
     2005A, 5.000%, 9/01/35 – SYNCORA GTY Insured             
1,000    Rocklin Unified School District, Placer County, California, Special Tax Bonds, Community    9/13 at 100.00    AA–    949,730 
     Facilities District 1, Series 2004, 5.000%, 9/01/25 – MBIA Insured             
405    Roseville, California, Certificates of Participation, Public Facilities, Series 2003A, 5.000%,    8/13 at 100.00    AA–    373,260 
     8/01/25 – AMBAC Insured             
5,000    San Bernardino Joint Powers Financing Authority, California, Certificates of Participation    9/09 at 102.00    AA–    5,140,500 
     Refunding, Police Station Financing Project, Series 1999, 5.500%, 9/01/20 – MBIA Insured             
1,500    San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series    8/15 at 100.00    AA–    1,293,570 
     2005A, 5.000%, 8/01/28 – MBIA Insured             
5,510    Sweetwater Union High School District Public Financing Authority, California, Special Tax    9/15 at 100.00    AAA    5,469,171 
     Revenue Bonds, Series 2005A, 5.000%, 9/01/28 – FSA Insured             
1,020    Washington Unified School District, Yolo County, California, Certificates of Participation,    8/17 at 100.00    A    845,407 
     Series 2007, 5.125%, 8/01/37 – AMBAC Insured             
118,090    Total Tax Obligation/Limited            102,260,018 
    Transportation – 7.0% (4.6% of Total Investments)             
6,500    Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding    1/10 at 65.32    A    3,351,985 
     Bonds, Series 1999, 0.000%, 1/15/18 – MBIA Insured             
4,000    Orange County Transportation Authority, California, Toll Road Revenue Bonds, 91 Express Lanes    8/13 at 100.00    A1    4,110,440 
     Project, Series 2003A, 5.000%, 8/15/18 – AMBAC Insured             
5,000    San Francisco Airports Commission, California, Revenue Refunding Bonds, San Francisco    5/11 at 100.00    AA–    4,456,450 
     International Airport, Second Series 2001, Issue 27A, 5.250%, 5/01/31 – MBIA Insured             
     (Alternative Minimum Tax)             
15,500    Total Transportation            11,918,875 
    U.S. Guaranteed – 20.2% (13.1% of Total Investments) (4)             
1,380    California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series    11/10 at 100.00    A2 (4)    1,481,596 
     2000, 5.875%, 11/01/20 (Pre-refunded 11/01/10) – MBIA Insured             
    California, Various Purpose General Obligation Bonds, Series 2000:             
7,995     5.750%, 3/01/22 (Pre-refunded 3/01/10) – MBIA Insured    3/10 at 101.00    AAA    8,372,843 
1,900     5.750%, 3/01/27 (Pre-refunded 3/01/10) – MBIA Insured    3/10 at 101.00    AAA    1,989,794 
2,085    Central Unified School District, Fresno County, California, General Obligation Bonds, Series    9/09 at 100.00    BBB (4)    2,108,144 
     1993, 5.625%, 3/01/18 – AMBAC Insured (ETM)             
3,000    Escondido Union High School District, San Diego County, California, General Obligation Bonds,    11/09 at 100.00    A (4)    3,061,500 
     Series 1996, 5.700%, 11/01/10 – MBIA Insured (ETM)             
    Fresno Unified School District, Fresno County, California, General Obligation Bonds,             
    Series 2001F:             
1,065     5.125%, 8/01/21 – FSA Insured (ETM)    8/09 at 102.00    AAA    1,093,063 
1,160     5.125%, 8/01/22 – FSA Insured (ETM)    8/09 at 102.00    AAA    1,190,566 
1,220     5.125%, 8/01/23 – FSA Insured (ETM)    8/09 at 102.00    AAA    1,252,147 
1,500    Hacienda La Puente Unified School District, Los Angeles County, California, General Obligation    8/10 at 101.00    AA– (4)    1,597,125 
     Bonds, Series 2000A, 5.250%, 8/01/25 (Pre-refunded 8/01/10) – MBIA Insured             
    Manteca Unified School District, San Joaquin County, California, General Obligation Bonds,             
    Series 2004:             
1,000     5.250%, 8/01/21 (Pre-refunded 8/01/14) – FSA Insured    8/14 at 100.00    AAA    1,167,640 
1,000     5.250%, 8/01/22 (Pre-refunded 8/01/14) – FSA Insured    8/14 at 100.00    AAA    1,167,640 
1,610    Poway Redevelopment Agency, California, Tax Allocation Refunding Bonds, Paguay Redevelopment    12/10 at 102.00    N/R (4)    1,766,685 
     Project, Series 2000, 5.750%, 6/15/33 (Pre-refunded 12/15/10) – MBIA Insured             
4,320    Riverside County, California, GNMA Mortgage-Backed Securities Program Single Family Mortgage    No Opt. Call    AAA    5,894,338 
     Revenue Bonds, Series 1987B, 8.625%, 5/01/16 (Alternative Minimum Tax) (ETM)             
1,000    Sacramento County Sanitation District Financing Authority, California, Revenue Bonds, Series    12/10 at 101.00    AA (4)    1,081,890 
     2000A, 5.500%, 12/01/20 (Pre-refunded 12/01/10) – AMBAC Insured             
905    University of California, Hospital Revenue Bonds, UCLA Medical Center, Series 2004A, 5.500%,    5/12 at 101.00    A (4)    1,021,075 
     5/15/18 (Pre-refunded 5/15/12) – AMBAC Insured             
31,140    Total U.S. Guaranteed            34,246,046 
    Utilities – 8.1% (5.3% of Total Investments)             
3,740    California Pollution Control Financing Authority, Revenue Refunding Bonds, Southern California    9/09 at 101.00    AA–    3,606,407 
     Edison Company, Series 1999B, 5.450%, 9/01/29 – MBIA Insured             
670    Merced Irrigation District, California, Electric System Revenue Bonds, Series 2005, 5.125%,    9/15 at 100.00    BBB–    536,945 
     9/01/31 – SYNCORA GTY Insured             
100    Sacramento City Financing Authority, California, Capital Improvement Revenue Bonds, Solid    12/09 at 102.00    A    102,633 
     Waste and Redevelopment Projects, Series 1999, 5.800%, 12/01/19 – AMBAC Insured             
1,950    Salinas Valley Solid Waste Authority, California, Revenue Bonds, Series 2002, 5.250%,    8/12 at 100.00    A    1,828,262 
     8/01/27 – AMBAC Insured (Alternative Minimum Tax)             
    Santa Clara, California, Subordinate Electric Revenue Bonds, Series 2003A:             
2,800     5.000%, 7/01/24 – MBIA Insured    7/13 at 100.00    AA–    2,759,064 
5,000     5.000%, 7/01/28 – MBIA Insured    7/13 at 100.00    AA–    4,927,250 
14,260    Total Utilities            13,760,561 
    Water and Sewer – 22.9% (15.0% of Total Investments)             
2,975    Chino Basin Regional Finance Authority, California, Sewerage System Revenue Bonds, Inland    8/09 at 100.00    AA–    2,986,692 
     Empire Utilities Agency, Series 1994, 6.000%, 8/01/16 – AMBAC Insured             
2,000    El Dorado Irrigation District, California, Water and Sewer Certificates of Participation,    3/14 at 100.00    AA–    2,023,040 
     Series 2004A, 5.000%, 3/01/21 – FGIC Insured             
750    Fortuna Public Finance Authority, California, Water Revenue Bonds, Series 2006, 5.000%,    10/16 at 100.00    AAA    721,838 
     10/01/36 – FSA Insured             
460    Healdsburg Public Financing Authority, California, Wastewater Revenue Bonds, Series 2006,    4/16 at 100.00    AA–    429,116 
     5.000%, 4/01/36 – MBIA Insured             
2,700    Los Angeles County Sanitation Districts Financing Authority, California, Senior Revenue Bonds,    10/13 at 100.00    AAA    2,827,251 
     Capital Projects, Series 2003A, 5.000%, 10/01/21 – FSA Insured             
2,000    Los Angeles, California, Wastewater System Revenue Bonds, Series 2005A, 4.500%, 6/01/29 –    6/15 at 100.00    AA    1,886,060 
     MBIA Insured             
430    Marina Coast Water District, California, Enterprise Certificate of Participation, Series 2006,    6/16 at 100.00    AA–    401,715 
     5.000%, 6/01/31 – MBIA Insured             
12,000    Orange County Sanitation District, California, Certificates of Participation, Series 2003,    8/13 at 100.00    AAA    12,021,600 
     5.000%, 2/01/33 – FGIC Insured (UB)             
1,520    San Buenaventura, California, Water Revenue Certificates of Participation, Series 2004,    10/14 at 100.00    AA    1,511,503 
     5.000%, 10/01/25 – AMBAC Insured             
1,000    San Diego County Water Authority, California, Water Revenue Certificates of Participation,    5/18 at 100.00    AAA    976,060 
     Series 2008A, 5.000%, 5/01/38 – FSA Insured             
3,675    San Dieguito Water District, California, Water Revenue Bonds, Series 2004, 5.000%, 10/01/23 –    10/14 at 100.00    AA+    3,768,125 
     FGIC Insured             
    Santa Clara Valley Water District, California, Certificates of Participation, Series 2004A:             
1,400     5.000%, 2/01/19 – FGIC Insured    2/14 at 100.00    AA+    1,471,904 
445     5.000%, 2/01/20 – FGIC Insured    2/14 at 100.00    AA+    464,789 
465     5.000%, 2/01/21 – FGIC Insured    2/14 at 100.00    AA+    482,726 
2,500    West Basin Municipal Water District, California, Revenue Certificates of Participation, Series    8/13 at 100.00    AA–    2,458,150 
     2003A, 5.000%, 8/01/30 – MBIA Insured             
    Yorba Linda Water District, California, Certificates of Participation, Highland Reservoir             
    Renovation, Series 2003:             
2,010     5.000%, 10/01/28 – FGIC Insured    10/13 at 100.00    AAA    2,034,080 
2,530     5.000%, 10/01/33 – FGIC Insured    10/13 at 100.00    AAA    2,532,758 
38,860    Total Water and Sewer            38,997,407 
$      278,245    Total Investments (cost $262,091,287) – 153.3%            260,399,521 
    Floating Rate Obligations – (11.8)%            (20,060,000)
    Other Assets Less Liabilities – 5.5%            9,330,977 
    Auction Rate Preferred Shares, at Liquidation Value – (47.0)% (5)            (79,825,000)
    Net Assets Applicable to Common Shares – 100%           $   169,845,498 

Fair Value Measurements

During the current fiscal period, the Fund adopted the provisions of Statement of Financial Accounting Standards No. 157 (SFAS No.157) “Fair Value Measurements.” SFAS No. 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosure about fair value measurements. In determining the value of the Fund’s investments various inputs are used. These inputs are summarized in the three broad levels listed below:

Level 1 – Quoted prices in active markets for identical securities.

Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

Level 3 – Significant unobservable inputs (including management’s assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of the Fund’s fair value measurements as of May 31, 2009:

    Level 1    Level 2    Level 3    Total 
Investments    $ —    $260,399,521    $ —    $260,399,521 

Income Tax Information

The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate transactions subject to Statement of Financial Accounting Standards No. 140 (SFAS No. 140), if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset value of the Fund.

At May 31, 2009, the cost of investments was $241,706,014.

Gross unrealized appreciation and gross unrealized depreciation of investments at May 31, 2009, were as follows:

Gross unrealized:     
  Appreciation    $ 8,102,541 
  Depreciation    (9,503,020)
Net unrealized appreciation (depreciation) of investments    $ (1,400,479)

    Primarily all of the Fund’s net assets (including net assets attributable to Auction Rate Preferred shares) 
    are invested in municipal securities that guarantee the timely payment of principle and interest. 
(1)    All percentages shown in the Portfolio of Investments are based on net assets applicable to Common 
    shares unless otherwise noted. 
(2)    Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. 
    There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities 
    may be subject to periodic principal paydowns. 
(3)    Ratings: Using the higher of Standard & Poor’s Group (“Standard & Poor’s”) or Moody’s Investor Service, 
    Inc. (“Moody’s”) rating. Ratings below BBB by Standard & Poor’s or Baa by Moody’s are considered to be 
    below investment grade. 
    The Portfolio of Investments may reflect the ratings on certain bonds whose insurer has experienced 
    downgrades as of the end of the reporting period. Subsequent to the reporting period, and during the 
    period this Portfolio of Investments was prepared, there may have been reductions to the ratings of 
    certain bonds resulting from changes to the ratings of the underlying insurers both during the period and 
    after period end. Such reductions would likely reduce the effective rating of many of the bonds insured by 
    that insurer or insurers presented at period end. 
(4)    Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities 
    which ensure the timely payment of principal and interest. Such investments are normally considered to 
    be equivalent to AAA rated securities. 
(5)    Auction Rate Preferred Shares, at Liquidation Value as a percentage of Total Investments is 30.7% 
N/R    Not rated. 
(ETM)    Escrowed to maturity. 
(IF)    Inverse floating rate investment. 
(UB)    Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the 
    provisions of SFAS No. 140. 

Item 2. Controls and Procedures.

  1. The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)).
  2. There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.

Item 3. Exhibits.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)), exactly as set forth below: See EX-99 CERT attached hereto.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)         Nuveen Insured California Premium Income Municipal Fund 2, Inc.         

By (Signature and Title)          /s/ Kevin J. McCarthy                    
                                                  Kevin J. McCarthy
                                                  Vice President and Secretary

Date         July 30, 2009        

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)         /s/ Gifford R. Zimmerman                    
                                                 Gifford R. Zimmerman
                                                 Chief Administrative Officer (principal executive officer) 

Date         July 30, 2009        

By (Signature and Title)         /s/ Stephen D. Foy                              
                                                 Stephen D. Foy
                                                 Vice President and Controller (principal financial officer) 

Date        July 30, 2009