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:            8/31          

Date of reporting period:         5/31/07         

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, 2007             
Principal        Optional Call         
Amount (000)    Description (1)    Provisions (2)    Ratings (3)    Value 
    Education and Civic Organizations – 5.7% (3.8% of Total Investments)             
$             620    California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series    11/10 at 100.00    Aaa   $   660,529 
     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    2,183,693 
     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    AAA    1,578,510 
     AMBAC Insured             
6,000    University of California, Revenue Bonds, Multi-Purpose Projects, Series 2003A, 5.000%,    5/13 at 100.00    AAA    6,240,840 
     5/15/27 – AMBAC Insured             
10,245    Total Education and Civic Organizations            10,663,572 
    Health Care – 7.8% (5.2% of Total Investments)             
7,500    California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Series    5/17 at 100.00    AAA    7,825,650 
     2007C, 5.000%, 11/15/38 – AMBAC Insured             
5,000    The Regents of the University of California, Medical Center Pooled Revenue Bonds, Series    5/15 at 101.00    AAA    4,907,050 
     2007A, 4.500%, 5/15/37 – MBIA Insured             
1,755    University of California, Hospital Revenue Bonds, UCLA Medical Center, Series 2004A, 5.500%,    5/12 at 101.00    AAA    1,895,295 
     5/15/18 – AMBAC Insured             
14,255    Total Health Care            14,627,995 
    Housing/Single Family – 2.3% (1.5% of Total Investments)             
440    California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006H, 5.750%,    2/16 at 100.00    AAA    467,654 
     8/01/30 – FGIC Insured (Alternative Minimum Tax)             
2,500    California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006K, 5.500%,    2/16 at 100.00    AAA    2,644,875 
     2/01/42 – AMBAC Insured (Alternative Minimum Tax)             
1,100    California Housing Finance Agency, Single Family Mortgage Bonds, Series 1997C-2-II, 5.625%,    8/07 at 101.50    AAA    1,118,029 
     8/01/20 – MBIA Insured (Alternative Minimum Tax)             
4,040    Total Housing/Single Family            4,230,558 
    Tax Obligation/General – 23.0% (15.3% of Total Investments)             
1,460    ABC Unified School District, Los Angeles County, California, General Obligation Bonds, Series    8/10 at 101.00    AAA    1,559,499 
     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    AAA    1,534,967 
     Series 2006B, 5.250%, 8/01/30 – FGIC Insured             
4,400    California, General Obligation Bonds, Series 2003, 5.000%, 2/01/31 – MBIA Insured    2/13 at 100.00    AAA    4,549,820 
3,000    California, General Obligation Veterans Welfare Bonds, Series 2001BZ, 5.375%, 12/01/24 – MBIA    6/07 at 101.00    AAA    3,012,660 
     Insured (Alternative Minimum Tax)             
1,910    Fresno Unified School District, Fresno County, California, General Obligation Bonds, Series    No Opt. Call    AAA    2,285,086 
     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    1,323,285 
     Bonds, Series 2005A, 5.000%, 8/01/24 – FSA Insured             
3,310    Los Angeles Unified School District, California, General Obligation Bonds, Series 2006B,    7/16 at 100.00    AAA    3,414,629 
     4.750%, 7/01/25 – FGIC Insured (UB)             
4,000    Los Angeles Unified School District, Los Angeles County, California, General Obligation Bonds,    7/17 at 100.00    AAA    4,011,120 
     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    8/14 at 102.00    AAA    2,243,816 
3,250     5.000%, 8/01/22 – FSA Insured    8/14 at 102.00    AAA    3,448,478 
3,395     5.000%, 8/01/23 – FSA Insured    8/14 at 102.00    AAA    3,594,388 
1,270    Merced City School District, Merced County, California, General Obligation Bonds, Series 2004,    8/13 at 100.00    AAA    1,326,731 
     5.000%, 8/01/22 – FGIC Insured             
305    Roseville Joint Union High School District, Placer County, California, General Obligation    8/15 at 100.00    AAA    320,735 
     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    Aaa    2,627,925 
     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    AAA    606,116 
     Series 1999A, 0.000%, 7/01/21 – FGIC Insured             
1,575    San Diego Unified School District, San Diego County, California, General Obligation Bonds,    7/16 at 101.00    AAA    1,571,677 
     Series 2006G-1, 4.500%, 7/01/29 – FSA Insured (UB)             
2,000    San Francisco Community College District, California, General Obligation Bonds, Series 2002A,    6/10 at 102.00    Aaa    2,073,780 
     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    1,048,320 
     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    2,567,103 
     2004A, 5.000%, 8/01/21 – FGIC Insured             
41,735    Total Tax Obligation/General            43,120,135 
    Tax Obligation/Limited – 37.4% (24.8% 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    3,165,826 
8,000     0.000%, 9/01/21 – FSA Insured    No Opt. Call    AAA    4,270,400 
    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    1,606,439 
1,780     5.000%, 12/01/23 – AMBAC Insured    12/13 at 100.00    AAA    1,854,618 
3,725    California State Public Works Board, Lease Revenue Bonds, Department of Corrections, Series    1/16 at 100.00    AAA    3,994,653 
     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    AAA    399,768 
     Facilities District, Series 2005, 5.000%, 9/01/24 – FGIC Insured             
1,110    Chino Redevelopment Agency, California, Merged Chino Redevelopment Project Area Tax Allocation    9/16 at 101.00    AAA    1,167,676 
     Bonds, Series 2006, 5.000%, 9/01/38 – AMBAC Insured (UB)             
4,000    Contra Costa County, California, Certificates of Participation Refunding, Merrithew Memorial    11/07 at 102.00    AAA    4,105,360 
     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    6,148,920 
     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    8,633,556 
     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    3,085,650 
     High School and Elementary School Facilities, Series 1997A, 5.875%, 11/01/24 – MBIA Insured             
1,810    Kern County Board of Education, California, Certificates of Participation Refunding, Series    5/08 at 102.00    AAA    1,863,341 
     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    5,113,050 
     Project Area 1, Series 1998, 5.200%, 9/01/28 – AMBAC Insured             
685    Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Manchester Social    9/15 at 100.00    Aaa    711,927 
     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    1,052,660 
     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    1,313,075 
     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    AAA    4,137,080 
     Series 2003AW, 5.000%, 6/01/33 – AMBAC Insured             
4,140    Plumas County, California, Certificates of Participation, Capital Improvement Program, Series    6/13 at 101.00    AAA    4,312,307 
     2003A, 5.000%, 6/01/28 – AMBAC Insured             
390    Poway Redevelopment Agency, California, Tax Allocation Refunding Bonds, Paguay Redevelopment    12/10 at 102.00    AAA    420,564 
     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    337,548 
     2005A, 5.000%, 9/01/35 – XLCA Insured             
1,000    Rocklin Unified School District, Placer County, California, Special Tax Bonds, Community    9/13 at 100.00    AAA    1,045,190 
     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    AAA    420,524 
     8/01/25 – AMBAC Insured             
5,000    San Bernardino Joint Powers Financing Authority, California, Certificates of Participation    9/09 at 102.00    AAA    5,271,550 
     Refunding, Police Station Financing Project, Series 1999, 5.500%, 9/01/20 – MBIA Insured             
5,510    Sweetwater Union High School District Public Financing Authority, California, Special Tax    9/15 at 100.00    AAA    5,757,619 
     Revenue Bonds, Series 2005A, 5.000%, 9/01/28 – FSA Insured             
73,455    Total Tax Obligation/Limited            70,189,301 
    Transportation – 7.0% (4.7% of Total Investments)             
6,500    Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding    1/10 at 65.32    AAA    3,798,860 
     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    4,212,040 
     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    5,147,550 
     International Airport, Second Series 2001, Issue 27A, 5.250%, 5/01/31 – MBIA Insured             
     (Alternative Minimum Tax)             
15,500    Total Transportation            13,158,450 
    U.S. Guaranteed – 38.8% (25.7% of Total Investments) (4)             
1,380    California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series    11/10 at 100.00    Aaa    1,474,765 
     2000, 5.875%, 11/01/20 (Pre-refunded 11/01/10) – MBIA Insured             
1,450    California Health Facilities Financing Authority, Insured Health Facility Revenue Refunding    7/07 at 101.00    AAA    1,467,110 
     Bonds, Mark Twain St. Joseph’s Healthcare Corporation, Series 1996A, 6.000%, 7/01/19             
     (Pre-refunded 7/01/07) – MBIA Insured             
    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    1,371,651 
1,000     5.500%, 6/01/20 (Pre-refunded 6/01/10) – MBIA Insured    6/10 at 101.00    AAA    1,059,190 
3,450    California State Public Works Board, Lease Revenue Bonds, Department of Health Services,    11/09 at 101.00    AAA    3,648,858 
     Series 1999A, 5.750%, 11/01/24 (Pre-refunded 11/01/09) – MBIA Insured             
2,250    California State, General Obligation Bonds, Series 2004, 5.000%, 4/01/31 (Pre-refunded    4/14 at 100.00    Aaa    2,403,360 
     4/01/14) – AMBAC Insured             
2,500    California, Various Purpose General Obligation Bonds, Series 1999, 5.500%, 9/01/24    9/09 at 101.00    AAA    2,624,425 
     (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    8,477,578 
1,900     5.750%, 3/01/27 (Pre-refunded 3/01/10) – MBIA Insured    3/10 at 101.00    AAA    2,014,684 
2,425    Central Unified School District, Fresno County, California, General Obligation Bonds, Series    9/07 at 100.00    AAA    2,436,955 
     1993, 5.625%, 3/01/18 – AMBAC Insured (ETM)             
3,000    Escondido Union High School District, San Diego County, California, General Obligation Bonds,    11/07 at 101.00    AAA    3,054,930 
     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    1,112,073 
1,160     5.125%, 8/01/22 – FSA Insured (ETM)    8/09 at 102.00    AAA    1,211,272 
1,220     5.125%, 8/01/23 – FSA Insured (ETM)    8/09 at 102.00    AAA    1,273,924 
1,500    Hacienda La Puente Unified School District, Los Angeles County, California, General Obligation    8/10 at 101.00    AAA    1,581,465 
     Bonds, Series 2000A, 5.250%, 8/01/25 (Pre-refunded 8/01/10) – MBIA Insured             
2,665    Kern Community College District, California, General Obligation Bonds, Series 2003A, 5.000%,    11/13 at 100.00    AAA    2,844,728 
     11/01/21 (Pre-refunded 11/01/13) – FGIC Insured             
3,190    Kern County Board of Education, California, Certificates of Participation Refunding, Series    5/08 at 102.00    Aaa    3,299,481 
     1998A, 5.200%, 5/01/28 (Pre-refunded 5/01/08) – MBIA Insured             
1,750    Lake Tahoe Unified School District, El Dorado County, California, General Obligation Bonds,    8/09 at 100.00    AAA    1,811,618 
     Series 1999A, 5.250%, 8/01/24 (Pre-refunded 8/01/09) – FGIC Insured             
3,865    Los Angeles County Metropolitan Transportation Authority, California, Proposition C Second    7/10 at 101.00    AAA    4,070,734 
     Senior Lien Sales Tax Revenue Bonds, Series 2000A, 5.250%, 7/01/30 (Pre-refunded 7/01/10) –             
     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    1,086,570 
1,000     5.250%, 8/01/22 (Pre-refunded 8/01/14) – FSA Insured    8/14 at 100.00    AAA    1,086,570 
2,500    Oakland, California, Insured Revenue Bonds, 1800 Harrison Foundation – Kaiser Permanente,    1/10 at 100.00    AAA    2,639,375 
     Series 1999A, 6.000%, 1/01/29 (Pre-refunded 1/01/10) – AMBAC Insured             
2,775    Pomona Public Financing Authority, California, Revenue Bonds, Water Facilities Project, Series    5/09 at 101.00    AAA    2,897,738 
     1999AC, 5.500%, 5/01/29 (Pre-refunded 5/01/09) – FGIC Insured             
1,610    Poway Redevelopment Agency, California, Tax Allocation Refunding Bonds, Paguay Redevelopment    12/10 at 102.00    Aaa    1,745,948 
     Project, Series 2000, 5.750%, 6/15/33 (Pre-refunded 12/15/10) – 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    3,738,805 
     (Pre-refunded 7/01/12) – FSA Insured             
4,320    Riverside County, California, GNMA Mortgage-Backed Securities Program Single Family Mortgage    No Opt. Call    AAA    5,723,957 
     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    1,808,841 
     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    1,066,870 
     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    3,664,360 
     1999, 5.500%, 7/01/34 (Pre-refunded 7/01/09) – FGIC Insured             
67,955    Total U.S. Guaranteed            72,697,835 
    Utilities – 7.9% (5.2% of Total Investments)             
3,740    California Pollution Control Financing Authority, Revenue Refunding Bonds, Southern California    9/09 at 101.00    AAA    3,885,935 
     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    704,438 
     9/01/31 – XLCA Insured             
100    Sacramento City Financing Authority, California, Capital Improvement Revenue Bonds, Solid    12/09 at 102.00    AAA    106,634 
     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    2,030,301 
     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    2,920,596 
5,000     5.000%, 7/01/28 – MBIA Insured    7/13 at 100.00    AAA    5,204,450 
14,260    Total Utilities            14,852,354 
    Water and Sewer – 20.8% (13.8% of Total Investments)             
2,975    Chino Basin Regional Finance Authority, California, Sewerage System Revenue Bonds, Inland    8/07 at 100.00    AAA    2,980,563 
     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    2,091,280 
     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    480,852 
     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    2,838,024 
     Capital Projects, Series 2003A, 5.000%, 10/01/21 – FSA Insured             
430    Marina Coast Water District, California, Enterprise Certificate of Participation, Series 2006,    6/16 at 100.00    AAA    450,468 
     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    12,420,477 
     5.000%, 2/01/33 – FGIC Insured             
1,700    Pomona Public Finance Authority, California, Revenue Bonds, Water Facilities Project, Series    5/17 at 100.00    AAA    1,781,889 
     2007AY, 5.000%, 5/01/37 – AMBAC Insured             
1,520    San Buenaventura, California, Water Revenue Certificates of Participation, Series 2004,    10/14 at 100.00    AAA    1,587,686 
     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    3,864,373 
     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    1,470,602 
445     5.000%, 2/01/20 – FGIC Insured    2/14 at 100.00    AAA    466,146 
465     5.000%, 2/01/21 – FGIC Insured    2/14 at 100.00    AAA    485,995 
2,500    West Basin Municipal Water District, California, Revenue Certificates of Participation, Series    8/13 at 100.00    AAA    2,590,350 
     2003A, 5.000%, 8/01/30 – MBIA Insured             
750    Westlands Water District, California, Revenue Certificates of Participation, Series 2007A,    9/16 at 100.00    AAA    781,238 
     5.000%, 9/01/37 – 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    2,095,083 
2,530    5.000%, 10/01/33 – FGIC Insured    10/13 at 100.00    AAA    2,637,095 
37,560    Total Water and Sewer            39,022,121 
$      279,005    Total Investments (cost $271,356,325) – 150.7%            282,562,321 
    Floating Rate Obligations – (2.1)%            (3,997,000) 
    Other Assets Less Liabilities – 2.1%            3,948,285 
    Preferred Shares, at Liquidation Value – (50.7)%            (95,000,000) 
    Net Assets Applicable to Common Shares – 100%           $  187,513,606 

Forward Swaps outstanding at May 31, 2007:                         
        Fund            Fixed Rate            Unrealized 
    Notional    Pay/Receive    Floating Rate    Fixed Rate    Payment    Effective    Termination    Appreciation 
Counterparty    Amount    Floating Rate    Index    (Annualized)    Frequency    Date (5)    Date    (Depreciation) 
Morgan Stanley    $6,200,000    Pay    3-Month USD-LIBOR    5.811%    Semi-Annually    7/27/07    7/27/24    $156,457 
Morgan Stanley    5,400,000    Pay    3-Month USD-LIBOR    5.816       Semi-Annually    7/27/07    7/27/29    140,353 
                                $296,810 
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)                     

    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. 
    The Fund may invest in “zero coupon” securities. A zero coupon security does not pay a regular interest 
    coupon to its holders during the life of the security. Tax-exempt income to the holder of the security 
    comes from accretion of the difference between the original purchase price of the security at issuance 
    and the par value of the security at maturity and is effectively paid at maturity. Such securities are 
    included in the portfolio with a 0.00% coupon rate in their description. The market prices of zero coupon 
    securities generally are more volatile than the market prices of securities that pay interest periodically. 
(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. 
(5)    Effective date represents the date on which both the Fund and counterparty commence interest 
    payment accruals on each forward swap contract. 
(ETM)    Escrowed to maturity. 
(UB)    Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant 
    to the provisions of SFAS No. 140. 

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, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate transactions subject to SFAS No. 140.

At May 31, 2007, the cost of investments was $267,198,261.

Gross unrealized appreciation and gross unrealized depreciation of investments at May 31, 2007, were as follows:

Gross unrealized:     
  Appreciation    $11,746,268 
  Depreciation    (379,240) 
Net unrealized appreciation (depreciation) of investments    $11,367,028 

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/ Kevin J. McCarthy                    
                                                    Kevin J. McCarthy
                                                    Vice President and Secretary

Date         July 27, 2007        

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 27, 2007        

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

Date        July 27, 2007        

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