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:            08/31          

Date of reporting period:         11/30/06         

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)             
    November 30, 2006             
Principal        Optional Call         
Amount (000)    Description (1)    Provisions (2)    Ratings (3)    Value 
    Education and Civic Organizations – 5.6% (3.8% of Total Investments)             
$             620    California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series    11/10 at 100.00    Aaa   $   672,880 
     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    2,202,584 
     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    1,614,615 
     AMBAC Insured             
6,000    University of California, Revenue Bonds, Multi-Purpose Projects, Series 2003A, 5.000%, 5/15/27 –    5/13 at 100.00    AAA    6,373,499 
     AMBAC Insured             
10,245    Total Education and Civic Organizations            10,863,578 
    Health Care – 1.7% (1.2% of Total Investments)             
1,450    California Health Facilities Financing Authority, Insured Health Facility Revenue Refunding    1/07 at 102.00    AAA    1,481,683 
     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    1,936,537 
     5/15/18 – AMBAC Insured             
3,205    Total Health Care            3,418,220 
    Housing/Single Family – 2.2% (1.5% of Total Investments)             
440    California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006H, 5.750%,    2/16 at 100.00    AAA    476,929 
     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    2,692,200 
     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    1,125,003 
     8/01/20 – MBIA Insured (Alternative Minimum Tax)             
4,040    Total Housing/Single Family            4,294,132 
    Tax Obligation/General – 23.6% (16.1% of Total Investments)             
1,460    ABC Unified School District, Los Angeles County, California, General Obligation Bonds, Series    8/10 at 101.00    AAA    1,586,027 
     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    1,579,256 
     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    4,641,912 
    California, General Obligation Bonds, Series 2004:             
1,000     5.000%, 2/01/18 – AMBAC Insured    2/14 at 100.00    AAA    1,081,810 
2,250     5.000%, 4/01/31 – AMBAC Insured    4/14 at 100.00    AAA    2,393,910 
3,000    California, General Obligation Veterans Welfare Bonds, Series 2001BZ, 5.375%, 12/01/24 – MBIA    6/07 at 101.00    AAA    3,042,570 
     Insured (Alternative Minimum Tax)             
1,910    Fresno Unified School District, Fresno County, California, General Obligation Bonds, Series    No Opt. Call    AAA    2,369,088 
     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    1,356,140 
     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    2,381,104 
     5.000%, 7/01/17 – FSA Insured             
3,310    Los Angeles Unified School District, California, General Obligation Bonds, Series 2006B,    7/16 at 100.00    AAA    3,499,199 
     4.750%, 7/01/25 – FGIC Insured (UB)             
    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    2,309,332 
3,250     5.000%, 8/01/22 – FSA Insured    8/14 at 102.00    AAA    3,547,928 
3,395     5.000%, 8/01/23 – FSA Insured    8/14 at 102.00    AAA    3,699,090 
1,270    Merced City School District, Merced County, California, General Obligation Bonds, Series 2004,    8/13 at 100.00    AAA    1,356,665 
     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    328,183 
     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    2,688,550 
     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    611,798 
     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    1,617,217 
     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    2,113,120 
     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    1,072,600 
     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    2,646,981 
     2004A, 5.000%, 8/01/21 – FGIC Insured             
43,185    Total Tax Obligation/General            45,922,480 
    Tax Obligation/Limited – 40.7% (27.7% 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    3,161,978 
8,000     0.000%, 9/01/21 – FSA Insured    No Opt. Call    AAA    4,283,120 
    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    1,644,891 
1,780     5.000%, 12/01/23 – AMBAC Insured    12/13 at 100.00    AAA    1,893,920 
3,725    California State Public Works Board, Lease Revenue Bonds, Department of Corrections, Series    1/16 at 100.00    AAA    4,103,237 
     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    409,701 
     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    1,201,120 
     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    4,142,440 
     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    6,248,039 
     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    8,857,695 
     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    3,121,380 
     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    308,370 
     5.000%, 9/01/20 – XLCA Insured             
1,810    Kern County Board of Education, California, Certificates of Participation Refunding, Series    5/08 at 102.00    AAA    1,879,866 
     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    5,148,950 
     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    2,460,885 
     and Gas Utility Financing Project Areas, Series 2005A-1, 5.000%, 8/01/25 – AMBAC Insured             
685    Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Manchester Social    9/15 at 100.00    Aaa    729,135 
     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    1,080,350 
     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    1,352,138 
     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    4,225,880 
     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    2,996,340 
     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    4,401,938 
     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    2,193,400 
     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    345,940 
     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    1,068,980 
     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    428,360 
     8/01/25 – AMBAC Insured             
5,000    San Bernardino Joint Powers Financing Authority, California, Certificates of Participation    9/09 at 102.00    AAA    5,342,000 
     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    5,881,705 
     Revenue Bonds, Series 2005A, 5.000%, 9/01/28 – FSA Insured             
80,430    Total Tax Obligation/Limited            78,911,758 
    Transportation – 6.9% (4.7% of Total Investments)             
6,500    Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding    1/10 at 65.32    AAA    3,755,310 
     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    4,332,160 
     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    5,236,250 
     International Airport, Second Series 2001, Issue 27A, 5.250%, 5/01/31 – MBIA Insured             
     (Alternative Minimum Tax)             
15,500    Total Transportation            13,323,720 
    U.S. Guaranteed – 33.3% (22.6% of Total Investments) (4)             
1,380    California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series    11/10 at 100.00    Aaa    1,505,097 
     2000, 5.875%, 11/01/20 (Pre-refunded 11/01/10) – 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    1,396,269 
1,000     5.500%, 6/01/20 (Pre-refunded 6/01/10) – MBIA Insured    6/10 at 101.00    AAA    1,078,200 
3,450    California State Public Works Board, Lease Revenue Bonds, Department of Health Services,    11/09 at 101.00    AAA    3,705,162 
     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    2,661,200 
     (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    8,628,523 
1,900     5.750%, 3/01/27 (Pre-refunded 3/01/10) – MBIA Insured    3/10 at 101.00    AAA    2,050,556 
2,580    Central Unified School District, Fresno County, California, General Obligation Bonds, Series    3/07 at 100.00    AAA    2,593,726 
     1993, 5.625%, 3/01/18 – AMBAC Insured (ETM)             
3,000    Escondido Union High School District, San Diego County, California, General Obligation Bonds,    5/07 at 102.00    AAA    3,086,460 
     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    1,124,459 
1,160     5.125%, 8/01/22 – FSA Insured (ETM)    8/09 at 102.00    AAA    1,224,763 
1,220     5.125%, 8/01/23 – FSA Insured (ETM)    8/09 at 102.00    AAA    1,288,113 
1,500    Hacienda La Puente Unified School District, Los Angeles County, California, General Obligation    8/10 at 101.00    AAA    1,608,960 
     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:             
2,655     5.000%, 11/01/20 (Pre-refunded 11/01/13) – FGIC Insured    11/13 at 100.00    AAA    2,907,172 
2,665     5.000%, 11/01/21 (Pre-refunded 11/01/13) – FGIC Insured    11/13 at 100.00    AAA    2,918,122 
3,190    Kern County Board of Education, California, Certificates of Participation Refunding, Series    5/08 at 102.00    AAA    3,330,775 
     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    1,834,840 
     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    4,140,652 
     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    1,119,770 
1,000     5.250%, 8/01/22 (Pre-refunded 8/01/14) – FSA Insured    8/14 at 100.00    AAA    1,119,770 
2,500    Oakland, California, Insured Revenue Bonds, 1800 Harrison Foundation – Kaiser Permanente,    1/10 at 100.00    AAA    2,689,975 
     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    5,930,842 
     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    1,836,675 
     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    1,087,300 
     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    3,714,690 
     1999, 5.500%, 7/01/34 (Pre-refunded 7/01/09) – FGIC Insured             
59,180    Total U.S. Guaranteed            64,582,071 
    Utilities – 9.7% (6.6% of Total Investments)             
3,740    California Pollution Control Financing Authority, Revenue Refunding Bonds, Southern California    9/09 at 101.00    AAA    3,939,155 
     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    722,340 
     9/01/31 – XLCA Insured             
3,500    Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 2002II, 5.125%, 7/01/26 –    7/12 at 101.00    AAA    3,754,205 
     FSA Insured             
100    Sacramento City Financing Authority, California, Capital Improvement Revenue Bonds, Solid    12/09 at 102.00    AAA    108,229 
     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%, 8/01/27 –    8/12 at 100.00    AAA    2,070,413 
     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    2,985,668 
5,000     5.000%, 7/01/28 – MBIA Insured    7/13 at 100.00    AAA    5,316,600 
17,760    Total Utilities            18,896,610 
    Water and Sewer – 23.3% (15.8% of Total Investments)             
1,700    Castaic Lake Water Agency, California, Revenue Certificates of Participation, Series 2004A,    8/14 at 100.00    AAA    1,831,597 
     5.000%, 8/01/20 – AMBAC Insured             
2,975    Chino Basin Regional Finance Authority, California, Sewerage System Revenue Bonds, Inland    2/07 at 100.00    AAA    2,980,950 
     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    2,142,260 
     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    494,965 
     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    2,927,988 
     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    462,835 
     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    12,692,157 
     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    2,919,522 
     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    811,875 
     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    1,620,776 
     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    3,954,484 
     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    1,505,770 
445     5.000%, 2/01/20 – FGIC Insured    2/14 at 100.00    AAA    477,494 
465     5.000%, 2/01/21 – FGIC Insured    2/14 at 100.00    AAA    497,750 
2,130    Santa Rosa, Sonoma County, California, Wastewater Revenue Bonds, Series 2004B, 5.000%,    9/14 at 100.00    AAA    2,321,018 
     9/01/18 – FGIC Insured             
2,500    West Basin Municipal Water District, California, Revenue Certificates of Participation, Series    8/13 at 100.00    AAA    2,647,200 
     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    2,141,454 
2,530     5.000%, 10/01/33 – FGIC Insured    10/13 at 100.00    AAA    2,695,462 
42,465    Total Water and Sewer            45,125,557 
$      276,010    Total Investments (cost $268,689,374) – 147.0%            285,338,126 
    Floating Rate Obligations – (2.1%)            (3,997,000) 
    Other Assets Less Liabilities – 4.1%            7,705,867 
    Preferred Shares, at Liquidation Value – (49.0)%            (95,000,000) 
    Net Assets Applicable to Common Shares – 100%           $   194,046,993 

Forward Swaps outstanding at November 30, 2006:                         
        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) 
JPMorgan    $4,900,000    Pay    3 Month USD-LIBOR    5.869%    Semi-Annually    7/27/07    7/27/34    $    562,002 
Morgan Stanley    6,200,000    Pay    3 Month USD-LIBOR    5.811%    Semi-Annually    7/27/07    7/27/24    533,325 
Morgan Stanley    5,400,000    Pay    3 Month USD-LIBOR    5.816%    Semi-Annually    7/27/07    7/27/29    524,731 
                                $1,620,058 
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. 
(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 November 30, 2006, the cost of investments was $264,539,179.

Gross unrealized appreciation and gross unrealized depreciation of investments at November 30, 2006, were as follows:

Gross unrealized:     
  Appreciation    $16,803,405 
  Depreciation    0 
Net unrealized appreciation (depreciation) of investments    $16,803,405 

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         January 29, 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         January 29, 2007        

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

Date        January 29, 2007        

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