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)


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


Jessica R. Droeger—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:            8/31          

Date of reporting period:          5/31/06         

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, 2006             
        Optional         
Principal        Call         
Amount (000)    Description (1)    Provisions (2)    Ratings (3)    Value 
    Education and Civic Organizations – 12.5% (8.4% of Total Investments)             
    California Educational Facilities Authority, Revenue Bonds, Santa Clara University,             
    Series 1996:             
$          2,400     5.750%, 9/01/21 – MBIA Insured    9/06 at 102.00    AAA   $   2,461,224 
3,000     5.750%, 9/01/26 – MBIA Insured    9/06 at 102.00    AAA    3,074,910 
2,000    California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series    11/10 at 100.00    Aaa    2,173,720 
     2000, 5.875%, 11/01/20 – MBIA Insured             
2,125    California Educational Facilities Authority, Student Loan Revenue Bonds, Cal Loan Program,    3/08 at 102.00    Aaa    2,195,784 
     Series 2001A, 5.400%, 3/01/21 – MBIA Insured (Alternative Minimum Tax)             
5,380    California State University, Systemwide Revenue Bonds, Series 2004A, 5.000%, 11/01/16 –    5/14 at 100.00    AAA    5,703,607 
     FSA Insured             
1,500    California State University, Systemwide Revenue Bonds, Series 2005A, 5.000%, 11/01/25 –    5/15 at 100.00    AAA    1,562,925 
     AMBAC Insured             
6,000    University of California, Revenue Bonds, Multi-Purpose Projects, Series 2003A, 5.000%,    5/13 at 100.00    AAA    6,190,020 
     5/15/27 – AMBAC Insured             
22,405    Total Education and Civic Organizations            23,362,190 
    Health Care – 1.8% (1.2% of Total Investments)             
1,450    California Health Facilities Financing Authority, Insured Health Facility Revenue Refunding    7/06 at 102.00    AAA    1,481,538 
     Bonds, Mark Twain St. Joseph’s Healthcare Corporation, Series 1996A, 6.000%, 7/01/19 –             
     MBIA Insured             
1,755    University of California, Hospital Revenue Bonds, UCLA Medical Center, Series 2004A, 5.500%,    5/12 at 101.00    AAA    1,914,810 
     5/15/18 – AMBAC Insured             
3,205    Total Health Care            3,396,348 
    Housing/Single Family – 0.6% (0.4% of Total Investments)             
1,100    California Housing Finance Agency, Single Family Mortgage Bonds, Series 1997C-2-II, 5.625%,    8/07 at 101.50    AAA    1,127,544 
     8/01/20 – MBIA Insured (Alternative Minimum Tax)             
    Tax Obligation/General – 14.8% (9.9% of Total Investments)             
1,460    ABC Unified School District, Los Angeles County, California, General Obligation Bonds, Series    8/10 at 101.00    AAA    1,586,451 
     2000B, 5.750%, 8/01/16 – FGIC Insured             
4,400    California, General Obligation Bonds, Series 2003, 5.000%, 2/01/31 – MBIA Insured    2/13 at 100.00    AAA    4,506,128 
    California, General Obligation Bonds, Series 2004:             
1,000     5.000%, 2/01/18 – AMBAC Insured    2/14 at 100.00    AAA    1,047,580 
2,250     5.000%, 4/01/31 – AMBAC Insured    4/14 at 100.00    AAA    2,312,213 
3,000    California, General Obligation Veterans Welfare Bonds, Series 2001BZ, 5.375%, 12/01/24 – MBIA    6/07 at 101.00    AAA    3,070,980 
     Insured (Alternative Minimum Tax)             
1,910    Fresno Unified School District, Fresno County, California, General Obligation Bonds, Series    No Opt. Call    AAA    2,296,985 
     2002A, 6.000%, 8/01/26 – MBIA Insured             
1,255    Los Angeles Community College District, Los Angeles County, California, General Obligation    8/15 at 100.00    AAA    1,309,781 
     Bonds, Series 2005A, 5.000%, 8/01/24 – FSA Insured             
2,200    Los Angeles Unified School District, California, General Obligation Bonds, Series 2003F,    7/13 at 100.00    AAA    2,324,036 
     5.000%, 7/01/17 – FSA Insured             
1,270    Merced City School District, Merced County, California, General Obligation Bonds, Series 2004,    8/13 at 100.00    AAA    1,321,638 
     5.000%, 8/01/22 – FGIC Insured             
    Oakland Unified School District, Alameda County, California, General Obligation Bonds,             
    Series 2005:             
405     5.000%, 8/01/25 – MBIA Insured    8/15 at 100.00    AAA    421,127 
430     5.000%, 8/01/26 – MBIA Insured    8/15 at 100.00    AAA    446,142 
1,125    San Diego Unified School District, California, General Obligation Bonds, Election of 1998,    No Opt. Call    AAA    549,281 
     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    Aaa    2,058,400 
     5.000%, 6/15/26 – FGIC Insured             
    San Jose-Evergreen Community College District, Santa Clara County, California, General             
    Obligation Bonds, Series 2005A:             
320     5.000%, 9/01/25 – MBIA Insured    9/15 at 100.00    AAA    333,821 
465     5.000%, 9/01/27 – MBIA Insured    9/15 at 100.00    AAA    482,935 
1,000    San Ramon Valley Unified School District, Contra Costa County, California, General Obligation    8/14 at 100.00    AAA    1,039,690 
     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    AAA    2,540,282 
     2004A, 5.000%, 8/01/21 – FGIC Insured             
26,935    Total Tax Obligation/General            27,647,470 
    Tax Obligation/Limited – 45.0% (30.1% 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    2,915,276 
8,000     0.000%, 9/01/21 – FSA Insured    No Opt. Call    AAA    3,875,200 
3,500    California Department of Transportation, Federal Highway Grant Anticipation Bonds, Series    No Opt. Call    AAA    3,757,215 
     2004A, 5.000%, 2/01/15 – FGIC Insured             
    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    AAA    1,598,764 
1,780     5.000%, 12/01/23 – AMBAC Insured    12/13 at 100.00    AAA    1,842,425 
5,000    Compton Community Redevelopment Agency, California, Tax Allocation Refunding Bonds, Merged    8/06 at 101.00    AAA    5,111,050 
     Area Redevelopment Projects, Series 1995A, 6.500%, 8/01/13 – FSA Insured             
4,000    Contra Costa County, California, Certificates of Participation Refunding, Merrithew Memorial    11/07 at 102.00    AAA    4,165,800 
     Hospital Replacement, Series 1997, 5.500%, 11/01/22 – MBIA Insured             
6,000    El Monte, California, Senior Lien Certificates of Participation, Department of Public Services    1/11 at 100.00    AAA    6,141,480 
     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    AAA    8,509,522 
     Redevelopment Project, Series 2005A, 5.000%, 10/01/32 – AMBAC Insured             
3,000    Galt Schools Joint Powers Authority, Sacramento County, California, Revenue Refunding Bonds,    11/07 at 102.00    AAA    3,146,520 
     High School and Elementary School Facilities, Series 1997A, 5.875%, 11/01/24 – MBIA Insured             
285    Hesperia Community Redevelopment Agency, California, Tax Allocation Bonds, Series 2005A,    9/15 at 100.00    AAA    297,970 
     5.000%, 9/01/20 – XLCA Insured             
5,000    Kern County Board of Education, California, Certificates of Participation Refunding, Series    5/08 at 102.00    AAA    5,195,550 
     1998A, 5.200%, 5/01/28 – MBIA Insured             
5,000    La Quinta Redevelopment Agency, California, Tax Allocation Refunding Bonds, Redevelopment    9/07 at 102.00    AAA    5,160,850 
     Project Area 1, Series 1998, 5.200%, 9/01/28 – AMBAC Insured             
2,300    Long Beach Bond Finance Authority, California, Multiple Project Tax Allocation Bonds, Housing    8/15 at 100.00    AAA    2,381,098 
     and Gas Utility Financing Project Areas, Series 2005A-1, 5.000%, 8/01/25 – AMBAC Insured             
1,000    Los Angeles Community Redevelopment Agency, California, Tax Allocation Bonds, Bunker Hill    12/14 at 100.00    AAA    1,046,140 
     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    1,313,175 
     Senior Sales Tax Revenue Bonds, Series 2003B, 5.000%, 7/01/19 – MBIA Insured             
2,500    Los Angeles County Metropolitan Transportation Authority, California, Proposition A First Tier    7/15 at 100.00    AAA    2,600,775 
     Senior Sales Tax Revenue Bonds, Series 2005A, 5.000%, 7/01/26 – AMBAC Insured             
3,865    Los Angeles County Metropolitan Transportation Authority, California, Proposition C Second    7/10 at 101.00    AAA    4,069,111 
     Senior Lien Sales Tax Revenue Bonds, Series 2000A, 5.250%, 7/01/30 – FGIC Insured             
4,000    Los Angeles, California, Certificates of Participation, Municipal Improvement Corporation,    6/13 at 100.00    AAA    4,088,840 
     Series 2003AW, 5.000%, 6/01/33 – AMBAC Insured             
2,780    Pittsburg Redevelopment Agency, California, Tax Allocation Refunding Bonds, Los Medanos    No Opt. Call    AAA    2,963,619 
     Community Development Project, Series 2003A, 5.000%, 8/01/12 – MBIA Insured             
4,140    Plumas County, California, Certificates of Participation, Capital Improvement Program, Series    6/13 at 101.00    AAA    4,259,563 
     2003A, 5.000%, 6/01/28 – AMBAC Insured             
2,000    Poway Redevelopment Agency, California, Tax Allocation Refunding Bonds, Paguay Redevelopment    12/10 at 102.00    AAA    2,188,360 
     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    AAA    332,345 
     2005A, 5.000%, 9/01/35 – XLCA Insured             
685    Riverside County Public Financing Authority, California, Tax Allocation Bonds, Multiple    10/15 at 100.00    AAA    700,597 
     Projects, Series 2005A, 5.000%, 10/01/35 – XLCA Insured             
1,000    Rocklin Unified School District, Placer County, California, Special Tax Bonds, Community    9/13 at 100.00    AAA    1,036,330 
     Facilities District 1, Series 2004, 5.000%, 9/01/25 – MBIA Insured             
5,000    San Bernardino Joint Powers Financing Authority, California, Certificates of Participation    9/09 at 102.00    AAA    5,349,250 
     Refunding, Police Station Financing Project, Series 1999, 5.500%, 9/01/20 – MBIA Insured             
87,355    Total Tax Obligation/Limited            84,046,825 
    Transportation – 6.9% (4.6% of Total Investments)             
6,500    Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding    1/10 at 65.32    AAA    3,622,190 
     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    AAA    4,223,160 
     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    AAA    5,098,400 
     International Airport, Second Series 2001, Issue 27A, 5.250%, 5/01/31 – MBIA Insured             
     (Alternative Minimum Tax)             
15,500    Total Transportation            12,943,750 
    U.S. Guaranteed – 32.9% (22.0% of Total Investments) (4)             
    California Infrastructure Economic Development Bank, Revenue Bonds, Asian Art Museum of San             
    Francisco, Series 2000:             
1,295     5.500%, 6/01/19 (Pre-refunded 6/01/10) – MBIA Insured    6/10 at 101.00    AAA    1,396,023 
1,000     5.500%, 6/01/20 (Pre-refunded 6/01/10) – MBIA Insured    6/10 at 101.00    AAA    1,078,010 
3,450    California State Public Works Board, Lease Revenue Bonds, Department of Health Services,    11/09 at 101.00    AAA    3,712,856 
     Series 1999A, 5.750%, 11/01/24 (Pre-refunded 11/01/09) – MBIA Insured             
2,500    California, Various Purpose General Obligation Bonds, Series 1999, 5.500%, 9/01/24    9/09 at 101.00    AAA    2,667,200 
     (Pre-refunded 9/01/09) – FSA 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    8,658,025 
1,900     5.750%, 3/01/27 (Pre-refunded 3/01/10) – MBIA Insured    3/10 at 101.00    AAA    2,057,567 
2,580    Central Unified School District, Fresno County, California, General Obligation Bonds, Series    9/06 at 100.00    AAA    2,592,848 
     1993, 5.625%, 3/01/18 – AMBAC Insured (ETM)             
3,000    Escondido Union High School District, San Diego County, California, General Obligation Bonds,    11/06 at 102.00    AAA    3,084,390 
     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    1,122,531 
1,160     5.125%, 8/01/22 – FSA Insured (ETM)    8/09 at 102.00    AAA    1,222,663 
1,220     5.125%, 8/01/23 – FSA Insured (ETM)    8/09 at 102.00    AAA    1,285,904 
1,500    Hacienda La Puente Unified School District, Los Angeles County, California, General Obligation    8/10 at 101.00    AAA    1,606,140 
     Bonds, Series 2000A, 5.250%, 8/01/25 (Pre-refunded 8/01/10) – MBIA Insured             
    Kern Community College District, California, General Obligation Bonds, Series 2003A:             
3,655     5.000%, 11/01/20 (Pre-refunded 11/01/13) – FGIC Insured    11/13 at 100.00    AAA    3,934,096 
2,665     5.000%, 11/01/21 (Pre-refunded 11/01/13) – FGIC Insured    11/13 at 100.00    AAA    2,868,499 
1,750    Lake Tahoe Unified School District, El Dorado County, California, General Obligation Bonds,    8/09 at 100.00    AAA    1,839,985 
     Series 1999A, 5.250%, 8/01/24 (Pre-refunded 8/01/09) – FGIC 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    1,093,220 
1,000     5.250%, 8/01/22 (Pre-refunded 8/01/14) – FSA Insured    8/14 at 100.00    AAA    1,093,220 
440    Menifee Union School District, Riverside County, California, Certificates of Participation,    9/06 at 102.00    AAA    451,581 
     School Projects, Series 1996, 6.125%, 9/01/24 (Pre-refunded 9/01/06) – FSA Insured             
2,500    Oakland, California, Insured Revenue Bonds, 1800 Harrison Foundation – Kaiser Permanente,    1/10 at 100.00    AAA    2,697,750 
     Series 1999A, 6.000%, 1/01/29 (Pre-refunded 1/01/10) – AMBAC Insured             
4,320    Riverside County, California, GNMA Mortgage-Backed Securities Program Single Family Mortgage    No Opt. Call    AAA    5,762,664 
     Revenue Bonds, Series 1987B, 8.625%, 5/01/16 (Alternative Minimum Tax) (ETM)             
1,690    Sacramento City Financing Authority, California, Capital Improvement Revenue Bonds, Solid    12/09 at 102.00    AAA    1,841,255 
     Waste and Redevelopment Projects, Series 1999, 5.800%, 12/01/19 (Pre-refunded 12/01/09) –             
     AMBAC Insured             
1,000    Sacramento County Sanitation District Financing Authority, California, Revenue Bonds, Series    12/10 at 101.00    AAA    1,084,980 
     2000A, 5.500%, 12/01/20 (Pre-refunded 12/01/10) – AMBAC Insured             
3,500    San Francisco Bay Area Rapid Transit District, California, Sales Tax Revenue Bonds, Series    7/09 at 101.00    AAA    3,725,260 
     1999, 5.500%, 7/01/34 (Pre-refunded 7/01/09) – FGIC Insured             
4,450    Visalia, California, Certificates of Participation Refunding, Motor Vehicle License Fee    12/06 at 102.00    AAA    4,579,985 
     Enhancement, Series 1996A, 5.375%, 12/01/26 (Pre-refunded 12/01/06) – MBIA Insured             
56,635    Total U.S. Guaranteed            61,456,652 
    Utilities – 11.7% (7.8% of Total Investments)             
3,740    California Pollution Control Financing Authority, Revenue Refunding Bonds, Southern California    9/09 at 101.00    AAA    3,929,842 
     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    AAA    694,931 
     9/01/31 – XLCA Insured             
3,215    Modesto Irrigation District, California, Revenue Refunding Bonds, Series 1996A, 6.000%,    10/06 at 102.00    AAA    3,303,348 
     10/01/15 – MBIA Insured             
3,500    Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 2002II, 5.125%, 7/01/26 –    7/12 at 101.00    AAA    3,659,355 
     FSA Insured             
100    Sacramento City Financing Authority, California, Capital Improvement Revenue Bonds, Solid    12/09 at 102.00    AAA    108,577 
     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    AAA    2,009,339 
     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    AAA    2,897,916 
5,000     5.000%, 7/01/28 – MBIA Insured    7/13 at 100.00    AAA    5,148,500 
20,975    Total Utilities            21,751,808 
    Water and Sewer – 23.3% (15.6% of Total Investments)             
1,700    Castaic Lake Water Agency, California, Revenue Certificates of Participation, Series 2004A,    8/14 at 100.00    AAA    1,775,769 
     5.000%, 8/01/20 – AMBAC Insured             
2,975    Chino Basin Regional Finance Authority, California, Sewerage System Revenue Bonds, Inland    8/06 at 100.00    AAA    2,986,454 
     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    AAA    2,079,940 
     Series 2004A, 5.000%, 3/01/21 – FGIC Insured             
460    Healdsburg Public Financing Authority, California, Wastewater Revenue Bonds, Series 2006,    4/16 at 100.00    AAA    474,209 
     5.000%, 4/01/36 (WI/DD, Settling 6/06/06) – MBIA Insured             
2,700    Los Angeles County Sanitation Districts Financing Authority, California, Senior Revenue Bonds,    10/13 at 100.00    AAA    2,807,298 
     Capital Projects, Series 2003A, 5.000%, 10/01/21 – FSA Insured             
12,000    Orange County Sanitation District, California, Certificates of Participation, Series 2003,    8/13 at 100.00    AAA    12,300,478 
     5.000%, 2/01/33 – FGIC Insured             
2,775    Pomona Public Financing Authority, California, Revenue Bonds, Water Facilities Project, Series    5/09 at 101.00    AAA    2,919,411 
     1999AC, 5.500%, 5/01/29 – FGIC Insured             
750    Sacramento County Sanitation District Financing Authority, California, Revenue Bonds, Series    12/14 at 100.00    AAA    785,693 
     2004A, 5.000%, 12/01/21 – AMBAC Insured             
1,520    San Buenaventura, California, Water Revenue Certificates of Participation, Series 2004,    10/14 at 100.00    AAA    1,572,774 
     5.000%, 10/01/25 – AMBAC Insured             
3,675    San Dieguito Water District, California, Water Revenue Bonds, Series 2004, 5.000%, 10/01/23 –    10/14 at 100.00    AAA    3,831,114 
     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    AAA    1,461,950 
445     5.000%, 2/01/20 – FGIC Insured    2/14 at 100.00    AAA    463,806 
465     5.000%, 2/01/21 – FGIC Insured    2/14 at 100.00    AAA    483,423 
2,130    Santa Rosa, Sonoma County, California, Wastewater Revenue Bonds, Series 2004B, 5.000%,    9/14 at 100.00    AAA    2,253,732 
     9/01/18 – FGIC Insured             
2,500    West Basin Municipal Water District, California, Revenue Certificates of Participation, Series    8/13 at 100.00    AAA    2,564,150 
     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    2,071,426 
2,530     5.000%, 10/01/33 – FGIC Insured    10/13 at 100.00    AAA    2,599,373 
42,035    Total Water and Sewer            43,431,000 
$      276,145    Total Investments (cost $268,161,629) – 149.5%            279,163,587 
    Other Assets Less Liabilities – 1.4%            2,531,540 
    Preferred Shares, at Liquidation Value – (50.9)%            (95,000,000) 
    Net Assets Applicable to Common Shares – 100%           $   186,695,127 

    All of the bonds in the Portfolio of Investments, are either covered by Original Issue Insurance, Secondary 
    Market Insurance or Portfolio Insurance, or are backed by an escrow or trust containing sufficient U.S. 
    Government or U.S. Government agency securities, any of which ensure the timely payment of principal 
    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 or Moody’s rating. Ratings below BBB by Standard & Poor’s 
    Group or Baa by Moody’s Investor Service, Inc. are considered to be below investment grade. 
(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. 
(ETM)    Escrowed to maturity. 
WI/DD    Purchased on a when-issued or delayed delivery basis. 

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 the treatment of paydown gains and losses, timing differences in recognizing taxable market discount and timing differences in recognizing certain gains and losses on investment transactions.

At May 31, 2006, the cost of investments was $268,006,579.

Gross unrealized appreciation and gross unrealized depreciation of investments at May 31, 2006, were as follows:

Gross unrealized:     
  Appreciation    $11,957,847 
  Depreciation    (800,839) 
Net unrealized appreciation (depreciation) of investments    $11,157,008 

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: 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/ Jessica R. Droeger                     
                                                    Jessica R. Droeger
                                                    Vice President and Secretary

Date         July 28, 2006        

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 28, 2006        

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

Date        July 28, 2006        

* Print the name and title of each signing officer under his or her signature.