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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form N-Q
 
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
 
811-21227
Investment Company Act File Number
 
Eaton Vance Insured Pennsylvania Municipal Bond Fund
(Exact Name of Registrant as Specified in Charter)
 
Two International Place, Boston, Massachusetts 02110
(Address of Principal Executive Offices)
 
Maureen A. Gemma
Two International Place, Boston, Massachusetts 02110
(Name and Address of Agent for Services)
 
(617) 482-8260
(Registrant’s Telephone Number, Including Area Code)
 
September 30
Date of Fiscal Year End
 
June 30, 2009
Date of Reporting Period
 

TABLE OF CONTENTS

Item 1. Schedule of Investments
Item 2. Controls and Procedures
Signatures
Certifications

Table of Contents

 
Item 1. Schedule of Investments

Table of Contents

Eaton Vance Insured Pennsylvania Municipal Bond Fund as of June 30, 2009
 
PORTFOLIO OF INVESTMENTS (Unaudited)
 
Tax-Exempt Investments — 167.3%
 
                 
Principal
 		           
Amount
 		           
(000’s omitted)     Security   Value  
Hospital — 11.1%
$ 850    
Lancaster County Hospital Authority, (Lancaster General Hospital), 4.50%, 3/15/36
  $ 715,989  
  350    
Lebanon County Health Facilities Authority, (Good Samaritan Hospital), 6.00%, 11/15/35
    284,561  
  1,500    
Lehigh County General Purpose Authority, (Lehigh Valley Health Network), 5.25%, 7/1/32
    1,336,665  
  750    
Pennsylvania Higher Educational Facilities Authority, (UPMC Health System), 6.00%, 1/15/31
    764,272  
  875    
Philadelphia Hospitals and Higher Education Facilities Authority, (Children’s Hospital), 4.50%, 7/1/37
    761,967  
                 
            $ 3,863,454  
                 
Insured-Electric Utilities — 5.7%
$ 2,235    
Lehigh County Industrial Development Authority, (PPL Electric Utilities Corp.), (FGIC), (NPFG), 4.75%, 2/15/27
  $ 1,980,210  
                 
            $ 1,980,210  
                 
Insured-Escrowed/Prerefunded — 4.6%
$ 270    
Southcentral General Authority, (Wellspan Health), (NPFG), Escrowed to Maturity, 5.25%, 5/15/31
  $ 274,436  
  1,230    
Southcentral General Authority, (Wellspan Health), (NPFG), Prerefunded to 5/15/11, 5.25%, 5/15/31
    1,333,615  
                 
            $ 1,608,051  
                 
Insured-General Obligations — 26.4%
$ 1,650    
Armstrong County, (NPFG), 5.40%, 6/1/31
  $ 1,600,451  
  660    
Centennial School District, (FSA), 5.25%, 12/15/37
    664,877  
  1,000    
Central Greene School District, (FSA), 5.00%, 2/15/35
    982,920  
  1,000    
Erie School District, (AMBAC), 0.00%, 9/1/30
    287,260  
  2,555    
McKeesport School District, (NPFG), 0.00%, 10/1/21
    1,387,595  
  1,500    
Norwin School District, (FSA), 3.25%, 4/1/27
    1,198,260  
  1,500    
Reading School District, (FSA), 5.00%, 3/1/35
    1,474,335  
  1,000    
Scranton School District, (FSA), 5.00%, 7/15/38
    978,980  
  2,550    
Shaler Area School District, (XLCA), 0.00%, 9/1/33
    590,937  
                 
            $ 9,165,615  
                 
Insured-Hospital — 9.0%
$ 250    
Allegheny County Hospital Development Authority, (UPMC Health System), (NPFG), 6.00%, 7/1/24
  $ 265,553  
  500    
Centre County Hospital Authority, (Mount Nittany Medical Center), (AGC), 6.25%, 11/15/44
    509,115  
  1,620    
Lehigh County General Purpose Authority, (Lehigh Valley Health Network), (FSA), 5.00%, 7/1/35(1)
    1,496,070  
  1,000    
Washington County Hospital Authority, (Washington Hospital), (AMBAC), 5.125%, 7/1/28
    851,190  
                 
            $ 3,121,928  
                 
Insured-Lease Revenue/Certificates of Participation — 4.9%
$ 500    
Commonwealth Financing Authority, (AGC), 5.00%, 6/1/31
  $ 498,660  
  1,215    
Philadelphia Authority for Industrial Development, (One Benjamin Franklin), (FSA), 4.75%, 2/15/27
    1,207,771  
                 
            $ 1,706,431  
                 
Insured-Private Education — 13.3%
$ 1,000    
Chester County Industrial Development Authority, Educational Facility, (Westtown School), (AMBAC), 5.00%, 1/1/31
  $ 939,800  
  1,675    
Pennsylvania Higher Educational Facilities Authority, (Drexel University), (NPFG), 5.00%, 5/1/37
    1,618,720  
  1,755    
Pennsylvania Higher Educational Facilities Authority, (Temple University), (NPFG), 4.50%, 4/1/36
    1,566,829  
  500    
Pennsylvania Higher Educational Facilities Authority, (University of the Sciences in Philadelphia), (AGC), 5.00%, 11/1/37
    488,850  
                 
            $ 4,614,199  
                 
 
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Principal
 		           
Amount
 		           
(000’s omitted)     Security   Value  
Insured-Public Education — 14.7%
$ 500    
Lycoming County Authority, (Pennsylvania College of Technology), (AGC), 5.50%, 10/1/37
  $ 506,190  
  2,400    
Lycoming County Authority, (Pennsylvania College of Technology), (AMBAC), 5.25%, 5/1/32
    2,012,880  
  1,000    
Pennsylvania Higher Educational Facilities Authority, (Clarion University Foundation), (XLCA), 5.00%, 7/1/33
    812,700  
  500    
State Public School Building Authority, (Delaware County Community College), (FSA), 5.00%, 10/1/27
    516,790  
  375    
State Public School Building Authority, (Delaware County Community College), (FSA), 5.00%, 10/1/29
    381,352  
  875    
State Public School Building Authority, (Delaware County Community College), (FSA), 5.00%, 10/1/32
    879,865  
                 
            $ 5,109,777  
                 
Insured-Sewer Revenue — 17.2%
$ 1,500    
Allegheny County Sanitation Authority, (BHAC), (NPFG), 5.00%, 12/1/22(2)
  $ 1,569,870  
  1,000    
Ambridge Borough Municipal Authority, Sewer Revenue, (FSA), 4.60%, 10/15/41
    868,040  
  1,920    
Erie Sewer Authority, (AMBAC), 0.00%, 12/1/26
    691,411  
  1,555    
Erie Sewer Authority, Series A, (AMBAC), 0.00%, 12/1/25
    603,340  
  2,155    
Erie Sewer Authority, Series B, (AMBAC), 0.00%, 12/1/25
    836,140  
  1,500    
University Area Joint Authority, (NPFG), 5.00%, 11/1/26
    1,424,790  
                 
            $ 5,993,591  
                 
Insured-Special Tax Revenue — 17.8%
$ 4,350    
Pittsburgh and Allegheny County Public Auditorium Authority, (AMBAC), 5.00%, 2/1/29(3)
  $ 4,115,926  
  24,665    
Puerto Rico Sales Tax Financing, (AMBAC), 0.00%, 8/1/54
    1,306,998  
  1,775    
Puerto Rico Sales Tax Financing, (NPFG), 0.00%, 8/1/44
    196,120  
  3,520    
Puerto Rico Sales Tax Financing, (NPFG), 0.00%, 8/1/45
    364,602  
  2,220    
Puerto Rico Sales Tax Financing, (NPFG), 0.00%, 8/1/46
    215,029  
                 
            $ 6,198,675  
                 
Insured-Transportation — 21.7%
$ 2,000    
Allegheny County Port Authority, (FGIC), (NPFG), 5.00%, 3/1/25
  $ 2,006,300  
  1,000    
Allegheny County Port Authority, (FGIC), (NPFG), 5.00%, 3/1/29
    988,830  
  2,075    
Pennsylvania Turnpike Commission, (FSA), 5.25%, 7/15/30
    2,226,413  
  295    
Philadelphia Airport Revenue, (AGC), 5.375%, 6/15/29
    299,378  
  2,100    
Puerto Rico Highway and Transportation Authority, (AGC), (CIFG), 5.25%, 7/1/41(1)
    2,018,341  
                 
            $ 7,539,262  
                 
Insured-Utilities — 7.0%
$ 3,000    
Philadelphia Gas Works Revenue, (AMBAC), 5.00%, 10/1/37
  $ 2,440,800  
                 
            $ 2,440,800  
                 
Insured-Water and Sewer — 0.4%
$ 150    
Saxonburg Water and Sewer Authority, (AGC), 5.00%, 3/1/35
  $ 144,941  
                 
            $ 144,941  
                 
Insured-Water Revenue — 3.6%
$ 1,530    
Philadelphia Water and Wastewater, (AMBAC), 4.25%, 11/1/31
  $ 1,263,214  
                 
            $ 1,263,214  
                 
Private Education — 8.4%
$ 3,000    
Pennsylvania Higher Educational Facilities Authority, (University of Pennsylvania), 4.75%, 7/15/35
  $ 2,925,510  
                 
            $ 2,925,510  
                 
Senior Living/Life Care — 1.2%
$ 200    
Montgomery County Industrial Development Authority, (Foulkeways at Gwynedd), 5.00%, 12/1/24
  $ 172,272  
  300    
Montgomery County Industrial Development Authority, (Foulkeways at Gwynedd), 5.00%, 12/1/30
    243,588  
                 
            $ 415,860  
                 
 
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Principal
 		           
Amount
 		           
(000’s omitted)     Security   Value  
Special Tax Revenue — 0.3%
$ 110    
Virgin Islands Public Finance Authority, 6.75%, 10/1/37(4)
  $ 110,194  
                 
            $ 110,194  
                 
         
Total Tax-Exempt Investments — 167.3%
(identified cost $63,521,086)
  $ 58,201,712  
         
         
Auction Preferred Shares Plus Cumulative Unpaid Dividends — (62.5)%
  $ (21,726,543 )
         
         
Other Assets, Less Liabilities — (4.8)%
  $ (1,687,926 )
         
         
Net Assets Applicable to Common Shares — 100.0%
  $ 34,787,243  
         
 
             
         
AGC
  -   Assured Guaranty Corp.
         
AMBAC
  -   AMBAC Financial Group, Inc.
         
BHAC
  -   Berkshire Hathaway Assurance Corp.
         
CIFG
  -   CIFG Assurance North America, Inc.
         
FGIC
  -   Financial Guaranty Insurance Company
         
FSA
  -   Financial Security Assurance, Inc.
         
NPFG
  -   National Public Finance Guaranty Corp.
         
XLCA
  -   XL Capital Assurance, Inc.
 
The Fund invests primarily in debt securities issued by Pennsylvania municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at June 30, 2009, 87.4% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 2.4% to 28.9% of total investments.
         
(1)
      Security represents the underlying municipal bond of a tender option bond trust.
         
(2)
      Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts.
         
(3)
      Security (or a portion thereof) has been segregated to cover payable for when-issued securities.
         
(4)
      When-issued security.
 
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A summary of financial instruments outstanding at June 30, 2009 is as follows:
 
Futures Contracts
 
                                 
Expiration
 		          Aggregate
 		          Net Unrealized
 		 
Date   Contracts   Position   Cost     Value     Depreciation  
9/09
  50 U.S. Treasury Bond   Short   $ (5,764,671 )   $ (5,917,969 )   $ (153,298 )
 
Interest Rate Swaps
 
                                 
          Annual
 		    Floating
 		         
    Notional
 		    Fixed Rate
 		    Rate
 		  Effective Date/
 		  Net Unrealized
 		 
Counterparty   Amount     Paid By Fund     Paid To Fund   Termination Date   Depreciation  
JPMorgan Chase Co. 
  $ 725,000       4.743 %   3-month USD-
LIBOR-BBA 		  September 14, 2009 /
September 14, 2039 		  $ (65,261 )
 
The effective date represents the date on which the Fund and the counterparty to the interest rate swap contract begin interest payment accruals.
 
At June 30, 2009, the Fund had sufficient cash and/or securities to cover commitments under these contracts.
 
The Fund is subject to interest rate risk in the normal course of pursuing its investment objectives. Because the Fund holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To hedge against this risk, the Fund may enter into interest rate swap contracts. The Fund may also purchase and sell U.S. Treasury futures contracts to hedge against changes in interest rates.
 
At June 30, 2009, the aggregate fair value of derivative instruments (not accounted for as hedging instruments under Financial Accounting Standards Board (FASB) Statement of Financial Accounting Standards No. 133) in a liability position and whose primary underlying risk exposure is interest rate risk was $218,559.
 
The cost and unrealized appreciation (depreciation) of investments of the Fund at June 30, 2009, as determined on a federal income tax basis, were as follows:
 
         
Aggregate cost
  $ 61,182,471  
         
Gross unrealized appreciation
  $ 553,750  
Gross unrealized depreciation
    (5,394,509 )
         
Net unrealized depreciation
  $ (4,840,759 )
         
 
The Fund adopted FASB Statement of Financial Accounting Standards No. 157, “Fair Value Measurements”, effective October 1, 2008. FAS 157 established a three-tier hierarchy to prioritize the assumptions, referred to as inputs, used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
 
  •   Level 1 — quoted prices in active markets for identical investments
 
  •   Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
 
  •   Level 3 — significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments)
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
 
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At June 30, 2009, the inputs used in valuing the Fund’s investments, which are carried at value, were as follows:
 
                                 
    Quoted Prices in
 		                   
    Active Markets for
 		    Significant Other
 		    Significant
 		       
    Identical Assets     Observable Inputs     Unobservable Inputs        
       
Asset Description
  (Level 1)     (Level 2)     (Level 3)     Total  
Tax-Exempt Investments
  $ —     $ 58,201,712     $ —     $ 58,201,712  
                                 
Total Investments
  $ —     $ 58,201,712     $ —     $ 58,201,712  
                                 
                                 
Liability Description
                       
Futures Contracts
  $ (153,298 )   $ —     $ —     $ (153,298 )
Interest Rate Swaps
    —       (65,261 )     —       (65,261 )
                                 
Total
  $ (153,298 )   $ (65,261 )   $ —     $ (218,559 )
                                 
 
The Fund held no investments or other financial instruments as of September 30, 2008 whose fair value was determined using Level 3 inputs.
 
For information on the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to the Fund’s most recent financial statements included in its semiannual or annual report to shareholders.
 
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Item 2. Controls and Procedures
 
(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant on this Form N-Q has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant on this Form N-Q has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.
 
(b) There have been no changes in the registrant’s internal controls over financial reporting during the fiscal quarter for which the report is being filed that have materially affected, or are reasonably likely to materially affect the registrant’s internal control over financial reporting.

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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.
 
Eaton Vance Insured Pennsylvania Municipal Bond Fund
 
         
By:
  /s/ Cynthia J. Clemson    
         
    Cynthia J. Clemson    
    President    
         
Date:
  August 20, 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:
  /s/ Cynthia J. Clemson    
         
    Cynthia J. Clemson    
    President    
         
Date:
  August 20, 2009    
         
By:
  /s/ Barbara E. Campbell    
         
    Barbara E. Campbell    
    Treasurer    
         
Date:
  August 20, 2009