EX-99.77B ACCT LTTR

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Trustees of
Morgan Stanley Insured Municipal Bond Trust:

In planning and performing our audit of the financial statements of Morgan Stanley Insured Municipal Bond Trust (the “Trust”) as of and for the year ended October 31, 2008, in accordance with the standards of the Public Company Accounting Oversight Board (United States), we considered the Trust's internal control over financial reporting, including controls over safeguarding securities, as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements and to comply with the requirements of Form N-SAR, but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting.  Accordingly, we express no such opinion.

The management of the Trust is responsible for establishing and maintaining effective internal control over financial reporting.  In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of controls.  A fund's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.  A fund's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the fund; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and
 expenditures of the fund are being made only in accordance with authorizations of management and trustees of the fund; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of a fund's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.  Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

A deficiency in internal control over financial reporting exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis.  A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the fund's annual or interim financial statements will not be prevented or detected on a timely basis.

Our consideration of the Trust's internal control over financial reporting was for the limited purpose described in the first paragraph and would not necessarily disclose all deficiencies in internal control that might be material weaknesses under standards established by the Public Company Accounting Oversight Board (United States).  However, we noted no deficiencies in the Trust's internal control over financial reporting and its operation, including controls for safeguarding securities, that we consider to be a material weakness, as defined above, as of October 31, 2008.

This report is intended solely for the information and use of management and the Board of Trustees of Morgan Stanley Insured Municipal Bond Trust and the Securities and Exchange Commission and is not intended to be and should not be used by anyone other than these specified parties.




New York, New York
December 26, 2008

EX-99.77C VOTES

SUB-ITEM 77(c)

MORGAN STANLEY INSURED MUNICIPAL BOND TRUST

On November 14, 2008, a Special Meeting of Shareholders of the Trust was
scheduled in order to vote on the proposals set forth below. The Special Meeting
of Shareholders was adjourned until December 12, 2008 with respect to proposal 1
only. The voting results with respect to all proposals were as follows:

(1) Approval of a modification to the Trust's investment policies to allow the
Trust to invest, under normal market conditions, at least 80% of the Trust's net
assets in municipal obligations which are covered by insurance guaranteeing the
timely payment of principal and interest thereon and that are rated at least "A"
by a nationally recognized statistical rating organization ("NRSRO") or are
unrated but judged to be of similar credit quality by the Trust's Investment
Adviser, or covered by insurance issued by insurers rated at least "A" by a
NRSRO:

                                FOR           AGAINST        ABSTAIN        BNV*

COMMON SHAREHOLDERS          1,850,486        314,837        129,168          0

PREFERRED SHAREHOLDERS          356              8              3             0

(2) Approval of a modification to the Trust's investment policies to allow the
Trust to invest up to 20% of the Trust's net assets in taxable or tax-exempt
fixed income securities rated at least investment grade by a nationally
recognized statistical rating organization or, if not rated, determined by the
Trust's Investment Adviser to be of comparable quality, including uninsured
municipal obligations, obligations of the U.S. government, its respective
agencies or instrumentalities, and other fixed income obligations, and, during
periods in which the Investment Adviser believes that changes in economic,
financial or political conditions make it advisable to do so, to invest an
unlimited extent in such investments for temporary defensive purposes. The Trust
may also invest in options, futures, swaps and other derivatives:

        FOR                AGAINST             ABSTAIN              BNV*
     1,702,689             341,872             129,918               0





(3) Eliminate certain fundamental policies and restrictions:

                                                                                    FOR         AGAINST       ABSTAIN         BNV*
Eliminate fundamental policy restricting the Trust's ability to pledge
assets.......................................................................... 1,637,924      369,124       167,432          0
Eliminate fundamental policy restricting purchases of securities on
margin.......................................................................... 1,606,527      402,913       165,040          0
Eliminate fundamental policy prohibiting investments in oil, gas and other
types of mineral leases......................................................... 1,617,234      353,935       203,311          0
Eliminate fundamental policy prohibiting investments for purposes of
exercising control.............................................................. 1,637,526      374,577       162,376          0
Eliminate fundamental policy regarding investments in unseasoned
companies....................................................................... 1,598,106      405,784       170,589          0
Eliminate fundamental policy prohibiting or restricting the purchase of
securities of issuers in which trustees or officers have an interest............ 1,599,878      398,757       175,845          0
Eliminate fundamental policy regarding purchase of common stock................. 1,569,732      343,108       261,640          0
Eliminate fundamental policy restricting investments in taxable debt
securities of any one issuer.................................................... 1,636,125      368,618       169,737          0
Eliminate fundamental policy regarding the purchase or sale of puts, calls
and combinations thereof........................................................ 1,590,596      403,517       180,367          0
Eliminate fundamental policy regarding the short sale of securities............. 1,596,351      408,062       170,067          0
Eliminate fundamental policy prohibiting investments in other investment
companies....................................................................... 1,615,115      390,802       168,563          0


(4) Modify certain fundamental investment policies and restrictions:

                                                                                    FOR         AGAINST       ABSTAIN         BNV*
Modify fundamental policy regarding diversification............................. 1,617,287      379,116       178,076          0
Modify fundamental policy regarding borrowing money............................. 1,577,991      404,013       192,475          0
Modify fundamental policy regarding loans....................................... 1,578,454      406,163       189,862          0
Modify fundamental policy regarding investment in commodities................... 1,590,854      412,220       171,405          0
Modify fundamental policy regarding issuance of senior securities............... 1,603,479      395,012       175,988          0

* Broker "non-votes" are shares held in street name for which the broker
indicates that instructions have not been received from the beneficial owners or
other persons entitled to vote and for which the broker does not have
discretionary voting authority.

EX-99.77D POLICIES

SUB-ITEM 77(d)

MORGAN STANLEY INSURED MUNICIPAL BOND TRUST


As previously stated in the Joint Proxy Statement dated October 1, 2008, which
was distributed in connection with the November 14, 2008 Special Shareholder
Meeting, the Trust may invest in options, futures, variable rate obligations and
when-issued or delayed delivery securities as noted below.

         Options and Futures. The Trust may invest in options and futures. The
Trust may use options and futures to protect against a decline in the Trust's
securities or an increase in prices of securities that may be purchased. If the
Trust invests in options and/or futures, its participation in these markets
would subject the Trust's portfolio to certain risks. If the Investment
Adviser's predictions of movements in the direction of the markets are
inaccurate, the adverse consequences to the Trust (e.g., a reduction in the
Trust's net asset value or a reduction in the amount of income available for
distribution) may leave the Trust in a worse position than if these strategies
were not used. Other risks inherent in the use of options and futures include,
for example, the possible imperfect correlation between the price of options and
futures contracts and movements in the prices of the securities being hedged and
the possible absence of a liquid secondary market for any particular instrument.
Certain options may be over-the-counter options which are options negotiated
with dealers; there is no secondary market for these investments and they may be
difficult to value.

         Variable Rate Obligations. The Trust may invest in Municipal
Obligations of the type called variable rate obligations. The interest rate
payable on a variable rate obligation is adjusted at predesignated periodic
intervals. Other features may include the right whereby the Trust may demand
prepayment of the principal amount of the obligation prior to its stated
maturity (a "demand feature") and the right of the issuer to prepay the
principal amount prior to maturity. The principal benefit of a variable rate
obligation is that the interest rate adjustment minimizes changes in the market
value of the obligation. As a result, the purchase of variable rate obligations
should enhance the ability of the Trust to maintain a stable net asset value per
share and to sell obligations prior to maturity at a price that is approximately
the full principal amount of the obligations. The principal benefit to the Trust
of purchasing obligations with a demand feature is that liquidity, and the
ability of the Trust to obtain repayment of the full principal amount of an
obligation prior to maturity, is enhanced. The payment of principal and interest
by issuers of certain obligations purchased by the Trust may be guaranteed by
letters of credit or other credit facilities offered by banks or other financial
institutions. Such guarantees will be considered in determining whether an
obligation meets the Trust's investment quality requirements.

         When-Issued and Delayed Delivery Securities. From time to time, the
Trust may purchase securities on a when-issued or delayed delivery basis. When
these transactions are negotiated, the price is fixed at the time of the
commitment, but delivery and payment can take place a month or more after the
date of commitment. The Trust may sell the securities before the settlement
date, if it is deemed advisable. The securities so purchased or sold are subject
to market fluctuation and no interest or dividends accrue to the purchaser prior
to the settlement date. At the time the Trust makes the commitment to purchase
or sell securities on a when-issued or delayed delivery basis, it will record
the transaction and thereafter reflect the value, each day, of such security
purchased, or if a sale, the proceeds to be received, in determining its net
asset value. At the time of delivery of the securities, their value may be more
or less than the purchase or sale price. An increase in the percentage of the
Trust's assets committed to the purchase of securities on a when-issued or
delayed delivery basis may increase the volatility of its net asset value. The
Trust will also establish a segregated account on the Trust's books in which it
will continually maintain cash or cash equivalents or other liquid portfolio
securities equal in value to commitments to purchase securities on a when-issued
or delayed delivery basis.