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:            02/28          

Date of reporting period:         11/30/08         

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)             
    November 30, 2008             
Principal        Optional Call         
Amount (000)    Description (1)    Provisions (2)    Ratings (3)    Value 
    Education and Civic Organizations – 6.5% (4.1% of Total Investments)             
$             620    California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series    11/10 at 100.00    A2   $   649,760 
     2000, 5.875%, 11/01/20 – MBIA Insured             
2,125    California Educational Facilities Authority, Student Loan Revenue Bonds, Cal Loan Program,    3/09 at 101.00    A2    1,931,009 
     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    1,419,585 
     AMBAC Insured             
6,000    University of California, Revenue Bonds, Multi-Purpose Projects, Series 2003A, 5.000%,    5/13 at 100.00    AA    5,728,440 
     5/15/27 – AMBAC Insured (UB)             
10,245    Total Education and Civic Organizations            9,728,794 
    Health Care – 2.0% (1.3% of Total Investments)             
1,410    California Statewide Communities Development Authority, Revenue Bonds, Saint Joseph Health    7/18 at 100.00    AAA    814,670 
     System, Trust 2554, 14.196%, 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    AA    1,584,440 
     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    618,131 
     5/15/18 – AMBAC Insured             
4,060    Total Health Care            3,017,241 
    Housing/Single Family – 2.4% (1.5% of Total Investments)             
400    California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006H, 5.750%,    2/16 at 100.00    Aa2    374,636 
     8/01/30 – FGIC Insured (Alternative Minimum Tax)             
2,325    California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006K, 5.500%,    2/16 at 100.00    Aaa    2,152,648 
     2/01/42 – AMBAC Insured (Alternative Minimum Tax)             
1,100    California Housing Finance Agency, Single Family Mortgage Bonds, Series 1997C-2-II, 5.625%,    2/09 at 100.75    AA    1,048,333 
     8/01/20 – MBIA Insured (Alternative Minimum Tax)             
3,825    Total Housing/Single Family            3,575,617 
    Tax Obligation/General – 25.6% (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    1,536,650 
     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    1,323,911 
     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    2,394,750 
4,400    California, General Obligation Bonds, Series 2003, 5.000%, 2/01/31 – MBIA Insured    2/13 at 100.00    AA    3,829,980 
3,000    California, General Obligation Veterans Welfare Bonds, Series 2001BZ, 5.375%, 12/01/24 – MBIA    12/08 at 100.00    AA    2,691,990 
     Insured (Alternative Minimum Tax)             
3,200    Coast Community College District, Orange County, California, General Obligation Bonds, Series    8/18 at 100.00    AAA    2,235,488 
     2006C, 0.000%, 8/01/31 – FSA Insured             
1,105    Fontana Unified School District, San Bernardino County, California, General Obligation Bonds,    8/18 at 100.00    AAA    1,014,501 
     Trust 2668, 12.170%, 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    1,232,184 
     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    3,663,160 
     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    2,132,640 
3,250     5.000%, 8/01/22 – FSA Insured (UB)    8/14 at 102.00    AAA    3,276,585 
3,395     5.000%, 8/01/23 – FSA Insured (UB)    8/14 at 102.00    AAA    3,411,975 
1,270    Merced City School District, Merced County, California, General Obligation Bonds, Series 2004,    8/13 at 100.00    AA    1,253,820 
     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    289,363 
     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    2,391,925 
     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    AA    557,786 
     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    1,884,000 
     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    975,530 
     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    2,422,213 
     2004A, 5.000%, 8/01/21 – FGIC Insured             
42,245    Total Tax Obligation/General            38,518,451 
    Tax Obligation/Limited – 58.2% (37.0% 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    3,011,720 
8,000     0.000%, 9/01/21 – FSA Insured    No Opt. Call    AAA    3,701,440 
    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–    1,543,366 
1,780     5.000%, 12/01/23 – AMBAC Insured    12/13 at 100.00    AA–    1,730,747 
3,725    California State Public Works Board, Lease Revenue Bonds, Department of Corrections &    1/16 at 100.00    AA    3,917,657 
     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    305,151 
     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    5,443,260 
     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    AA    6,711,520 
     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    2,996,221 
     Revenue Bonds, Drivers Trust 2091, 11.071%, 6/01/45 – AGC Insured (IF)             
4,500    Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement    6/15 at 100.00    A2    928,575 
     Revenue Bonds, Residual Series 2040, 1.012%, 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    15,549,451 
2,345     5.000%, 6/01/38 – FGIC Insured    6/15 at 100.00    A    1,772,304 
1,255    Hesperia Public Financing Authority, California, Redevelopment and Housing Projects Tax    9/17 at 100.00    Baa1    975,763 
     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    AA    1,236,189 
     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    1,718,686 
     1998A, 5.200%, 5/01/28 – MBIA Insured             
5,000    La Quinta Redevelopment Agency, California, Tax Allocation Refunding Bonds, Redevelopment    3/09 at 101.00    A    4,330,500 
     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    1,721,780 
     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    922,850 
     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    1,265,788 
     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–    3,637,560 
     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    2,537,670 
     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    AA    4,674,884 
     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    2,950,619 
     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    390,683 
     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–    250,530 
     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    865,130 
     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    A    351,666 
     8/01/25 – AMBAC Insured             
5,000    San Bernardino Joint Powers Financing Authority, California, Certificates of Participation    9/09 at 102.00    AA    5,051,700 
     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    1,261,575 
     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    5,129,865 
     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    AA    775,037 
     Series 2007, 5.125%, 8/01/37 – AMBAC Insured             
113,090    Total Tax Obligation/Limited            87,659,887 
    Transportation – 7.3% (4.7% of Total Investments)             
6,500    Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding    1/10 at 65.32    AA    3,208,140 
     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    4,066,840 
     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    3,807,300 
     International Airport, Second Series 2001, Issue 27A, 5.250%, 5/01/31 – MBIA Insured             
     (Alternative Minimum Tax)             
15,500    Total Transportation            11,082,280 
    U.S. Guaranteed – 22.7% (14.5% of Total Investments) (4)             
1,380    California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series    11/10 at 100.00    A2 (4)    1,491,683 
     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    8,472,701 
1,900     5.750%, 3/01/27 (Pre-refunded 3/01/10) – MBIA Insured    3/10 at 101.00    AAA    2,013,525 
2,260    Central Unified School District, Fresno County, California, General Obligation Bonds, Series    3/09 at 100.00    A (4)    2,275,752 
     1993, 5.625%, 3/01/18 – AMBAC Insured (ETM)             
3,000    Escondido Union High School District, San Diego County, California, General Obligation Bonds,    5/09 at 100.00    AA (4)    3,045,780 
     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    1,074,053 
1,160     5.125%, 8/01/22 – FSA Insured (ETM)    8/09 at 102.00    AAA    1,167,830 
1,220     5.125%, 8/01/23 – FSA Insured (ETM)    8/09 at 102.00    AAA    1,226,722 
1,500    Hacienda La Puente Unified School District, Los Angeles County, California, General Obligation    8/10 at 101.00    AA (4)    1,606,575 
     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    1,141,890 
1,000     5.250%, 8/01/22 (Pre-refunded 8/01/14) – FSA Insured    8/14 at 100.00    AAA    1,141,890 
1,610    Poway Redevelopment Agency, California, Tax Allocation Refunding Bonds, Paguay Redevelopment    12/10 at 102.00    Baa1 (4)    1,773,914 
     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    5,725,166 
     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)    1,086,000 
     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)    1,014,107 
     5/15/18 (Pre-refunded 5/15/12) – AMBAC Insured             
31,315    Total U.S. Guaranteed            34,257,588 
    Utilities – 8.5% (5.4% of Total Investments)             
3,740    California Pollution Control Financing Authority, Revenue Refunding Bonds, Southern California    9/09 at 101.00    AA    3,310,723 
     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–    543,899 
     9/01/31 – SYNCORA GTY Insured             
100    Sacramento City Financing Authority, California, Capital Improvement Revenue Bonds, Solid    12/09 at 102.00    A    104,506 
     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    1,533,227 
     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    2,699,984 
5,000     5.000%, 7/01/28 – MBIA Insured    7/13 at 100.00    AA    4,612,050 
14,260    Total Utilities            12,804,389 
    Water and Sewer – 23.9% (15.2% of Total Investments)             
2,975    Chino Basin Regional Finance Authority, California, Sewerage System Revenue Bonds, Inland    2/09 at 100.00    AA–    2,984,014 
     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    1,801,260 
     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    662,100 
     10/01/36 – FSA Insured             
460    Healdsburg Public Financing Authority, California, Wastewater Revenue Bonds, Series 2006,    4/16 at 100.00    AA    388,760 
     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    2,719,440 
     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    1,696,440 
     MBIA Insured             
430    Marina Coast Water District, California, Enterprise Certificate of Participation, Series 2006,    6/16 at 100.00    AA    348,420 
     5.000%, 6/01/31 – MBIA Insured             
12,000    Orange County Sanitation District, California, Certificates of Participation, Series 2008,    8/13 at 100.00    AAA    10,816,920 
     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    A    1,318,706 
     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    869,970 
     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    3,566,111 
     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+    1,428,280 
445     5.000%, 2/01/20 – FGIC Insured    2/14 at 100.00    AA+    448,520 
465     5.000%, 2/01/21 – FGIC Insured    2/14 at 100.00    AA+    465,116 
2,500    West Basin Municipal Water District, California, Revenue Certificates of Participation, Series    8/13 at 100.00    AA    2,312,850 
     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    1,903,329 
2,530     5.000%, 10/01/33 – FGIC Insured    10/13 at 100.00    AAA    2,337,037 
38,860    Total Water and Sewer            36,067,273 
$      273,400    Total Investments (cost $259,689,667) – 157.1%            236,711,520 
    Floating Rate Obligations – (13.3)%            (20,060,000)
    Other Assets Less Liabilities – 9.2%            13,811,264 
    Auction Rate Preferred Shares, at Liquidation Value – (53.0)% (5)            (79,825,000)
    Net Assets Applicable to Common Shares – 100%          $  150,637,784 

Futures Contracts outstanding at November 30, 2008:                     
                    Unrealized 
    Contract    Number of    Contract    Value at    Appreciation 
Type    Position    Contracts    Expiration November 30, 2008    (Depreciation) 
U.S. Treasury Bond    Short    (56)    12/08    $(7,199,500)    $(516,393) 

    At least 80% of the Fund’s net assets (including net assets attributable to Auction Rate Preferred shares) 
    are invested in municipal securities that are covered by insurance or backed by an escrow or trust account 
    containing sufficient U.S. Government or U.S. Government agency securities or U.S. Treasury-issued State 
    and Local Government Series securities to 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 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 insured by ACA, AGC, AMBAC, CIFG, 
    FGIC, FSA, MBIA, RAAI and SYNCORA as of November 30, 2008. Subsequent to November 30, 2008, 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 33.7%. 
(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. 

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 November 30, 2008:

    Level 1    Level 2    Level 3    Total 
Investments    $          —    $236,711,520    $ —    $236,711,520 
Derivatives*    (516,393)    —    —    (516,393) 
Total    $(516,393)    $236,711,520    $ —    $236,195,127 
*Represents net unrealized appreciation (depreciation).                 

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 SFAS No. 140. 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 November 30, 2008, the cost of investments was $239,413,777.

Gross unrealized appreciation and gross unrealized depreciation of investments at November 30, 2008, were as follows:

Gross unrealized:     
  Appreciation    $ 3,018,342 
  Depreciation    (25,783,864) 
Net unrealized appreciation (depreciation) of investments    $(22,765,522) 

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         January 29, 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         January 29, 2009        

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

Date        January 29, 2009