[photo of suspension bridge]



COLONIAL NEW YORK
INSURED MUNICIPAL FUND

SEMIANNUAL REPORT
MAY 31, 2002



PRESIDENT'S MESSAGE


DEAR SHAREHOLDER:

The environment for the municipal bond market has been shaped by economic events
and investor uncertainties over the past six months. Although the Federal
Reserve halted its string of interest rate cuts in December 2001, its presence
on the sidelines was felt by the market as investors tried to guess the timing
of its next move. A robust first quarter suggested that the Fed could act early
in 2002 to begin to raise short-term interest rates; however, they remained at a
40-year low throughout the period. Indications of more moderate economic growth
in the second quarter raised the possibility that the Fed may delay action until
later in the year.

The municipal bond market was one of the strongest bond market sectors for the
six-month period. As cities and states face leaner times and tighter budgets,
the volume of new municipal bonds increased somewhat. However, demand also
increased as investors favored bonds over stocks, and that has helped support
municipal bond returns.

The following report will provide you with more detailed information about the
fund's performance and the strategies used by portfolio manager Maureen G.
Newman. For more information, contact your financial advisor. As always, we
thank you for investing in Colonial New York Insured Municipal Fund and for
giving us the opportunity to help you build a strong financial future.

/s/ Keith T. Banks

Keith T. Banks
President
Colonial Management Associates, Inc.


Not FDIC Insured
May Lose Value
No Bank Guarantee

Economic and market conditions can frequently change. There is not assurance
that the trends described in this report will continue or commence.



PORTFOLIO MANAGER'S REPORT

For the six-month period ended May 31, 2002, Colonial New York Insured Municipal
Fund generated a 2.85% total return, based on net asset value. The fund's return
lagged the average 3.01% return of its peer group, the Lipper New York Insured
Municipal Debt Funds category. The fund's relatively long duration at the
beginning of the period was largely responsible for its underperformance.
Duration measures a fund's sensitivity to interest rate changes. Generally, a
longer duration benefits a fund when interest rates decline and hurts
performance when interest rates rise, as they did at the beginning of the period
(see sidebar). The fund's leverage, from investing the proceeds from the sale of
preferred shares in long-term bonds and paying out a short rate, boosted its
income. As a result, the income available for distribution to common
shareholders was enhanced.

As economic growth improved and interest rates rose, we shortened duration.
Also, during the period, we began the process of bringing the fund's portfolio
in line with a new Securities and Exchange Commission rule requiring mutual
funds to invest at least 80% of their net assets (plus any borrowings for
investment purposes) in the types of securities suggested by their names.
Effective July 1, 2002, the fund's investment strategies were changed to
indicate that the fund will, under normal conditions, invest at least 80% of its
net assets (plus any borrowings for investment purposes) in New York Municipal
Obligations that are covered by insurance guaranteeing the timely payment of
principal at maturity and interest. "New York Municipal Obligations" are bonds
and notes that generally are issued by or on behalf of New York state and local
governmental units whose interest is, in the opinion of issuer's counsel (or on
the basis of other reliable authority), exempt from regular federal income tax
and New York State and City personal income tax. Prior to July 1, 2002, the fund
was required to invest at least 65% of its total assets in New York Municipal
Obligations that were covered by insurance guaranteeing the timely payment of
principal at maturity and interest.

In replacing uninsured bonds, we focused on noncallable bonds, which we believe
have the potential to perform well in a stable or rising interest rate
environment. We also sold bonds that were trading at close to par value, the
amount paid to investors when a bond matures.

The New York economy is recovering slowly. To raise capital and meet its
budgetary obligations, the state has issued and we believe will continue to
issue a large amount of debt over the next several months. We expect to find
opportunities in this new issuance. If the economy improves, interest rates
could stabilize or rise, so we expect most of the fund's total return to come
from income in the months ahead.

/s/ MAUREEN G. NEWMAN

MAUREEN G. NEWMAN

Maureen G. Newman is the portfolio manager of Colonial New York Insured
Municipal Fund and a senior vice president of Colonial Management Associates,
Inc., an affiliate of Columbia Management Group. Ms. Newman received her BA in
economics from Boston College and her MBA from Babson College. She is a
Chartered Financial Analyst, a member of the Boston Security Analysts Society
and former chairman of the National Federation of Municipal Analysts.


[bar chart data]:
SIX-MONTH TOTAL RETURN AS OF 5/31/02 (%)

Colonial          Lehman
New York          Brothers
Insured           Municipal
Municipal         Bond
Fund              Index
-----             -----
2.85              2.56


Past performance is no guarantee of future investment results. The principal
value and investment returns will fluctuate, resulting in a gain or loss on
sale.

Tax-exempt investing offers current tax-free income, but it also involves
certain risks. The value of the fund shares will be affected by interest rate
changes and the creditworthiness of issues held in the fund. Single-state
municipal bond funds pose additional risks due to limited geographical
diversification. Interest income from certain tax-exempt bonds may be subject to
the federal alternative minimum tax for individuals and corporations.

The Lehman Brothers Municipal Bond Index is broad-based, unmanaged index that
tracks the performance of the municipal bond market. Unlike mutual funds,
indexes are not investments and do not incur fees or expenses. It is not
possible to invest in an index.

Lipper Inc., a widely respected data provider in the industry, calculates an
average total return for mutual funds with similar investment objectives as the
fund.


PRICE PER SHARE AS OF 5/31/02 ($)
Net asset value          15.61
------------------------------------
Market price             15.38
------------------------------------

SIX-MONTH TOTAL RETURNS (%)
Net asset value           2.85
------------------------------------
Market price              9.53
------------------------------------

DISTRIBUTIONS DECLARED
PER COMMON SHARE
12/1/01- 5/31/02 ($)
                           .58
------------------------------------

A portion of the fund's income may be subject to the alternative minimum tax.
The fund may at times purchase tax-exempt securities at a discount from their
original issue price. Some or all of this discount may be included in the fund's
ordinary income, and any market discount is taxable when distributed.

QUALITY BREAKDOWN
AS OF 5/31/02 (%)
AAA                       79.1
---------------------------------
AA                        15.0
---------------------------------
A                          1.5
---------------------------------
BBB                        2.9
---------------------------------
Non-rated                  1.5
---------------------------------

Quality breakdown is calculated as a percentage of total investments, including
short-term obligations. Ratings shown in the quality breakdown represent the
highest rating assigned to a particular bond by one of the following nationally
recognized rating agencies: Standard & Poor's Corporation, Moody's Investors
Service, Inc. or Fitch Investors Service, Inc. Sector breakdowns are calculated
as a percentage of net assets representing both common shares and auction
preferred shares.

Because the fund is actively managed, there can be no guarantee that the fund
will continue to maintain this quality breakdown or invest in these sectors in
the future.

TOP 10 INDUSTRY SECTORS
AS OF 5/31/02 (%)

Education                 16.6
----------------------------------
Special Non-Property Tax  10.7
----------------------------------
Airports                   8.5
----------------------------------
State Appropriated         8.4
----------------------------------
Hospitals                  8.0
----------------------------------
Water & Sewer              7.0
----------------------------------
Transportation             6.2
----------------------------------
Municipal Electric         5.1
----------------------------------
Local General Obligations  4.7
----------------------------------
Toll Facilities            4.1
----------------------------------

ABOUT DURATION

Duration is a measure, expressed in years, of interest-rate sensitivity. It's
similar to maturity, but because it takes into consideration the entire stream
of future principal and interest payments and how long it will take to collect
them, it is a more complex and also a more accurate measure of a fund's exposure
to changing interest rates.

Since we are active duration managers, we tend to use duration as a tactical
tool to anticipate or respond to interest rate changes. Because bond prices move
in the opposite direction that interest rates are moving, usually we lower
duration when we expect interest rates to rise or raise it when we expect
interest rates to fall. This adjustment provides the potential to benefit
performance. If we are wrong and interest rates rise after we lengthen duration
or fall after we shorten duration, fund performance could be hurt.

1


INVESTMENT PORTFOLIO

May 31, 2002 (Unaudited) (New York unless otherwise stated)

MUNICIPAL BONDS - 97.0%                  PAR        VALUE
----------------------------------------------------------------
EDUCATION - 16.6%
Niagara County Industrial Development
   Agency, Niagara University,
   Series 2001 A,
     5.350% 11/01/23                $1,000,000   $  989,400
Schenectady Industrial Development
   Agency, Union College, Series 1999 A,
     5.450% 12/01/29                 1,000,000    1,017,660
St. Lawrence County Industrial
   Development Agency, St. Lawrence
   University, Series 1998 A,
     5.375% 07/01/18                   700,000      728,574
State Dormitory Authority:
   Cooper Union, Series 1999,
     6.000% 07/01/19                 1,000,000    1,092,290
   New York University, Series 1998 A,
     5.750% 07/01/27                 1,500,000    1,644,480
   Pratt Institute, Series 1999,
     6.000% 07/01/28                   500,000      534,240
   Willow Towers, Inc., Series 2002,
     5.250% 02/01/22 (a)               500,000      499,960
----------------------------------------------------------------
                                                  6,506,604
----------------------------------------------------------------

----------------------------------------------------------------
HEALTH CARE - 12.1%
CONGREGATE CARE RETIREMENT - 1.4%
State Dormitory Authority, Miriam
   Osborn Memorial Home,
   Series 2000 B,
     6.875% 07/01/19                   300,000      337,401
Suffolk County Industrial Development
   Agency, Jefferson Ferry,
   Series 1999 A,
     7.200% 11/01/19                   200,000      208,000
----------------------------------------------------------------
                                                    545,401
----------------------------------------------------------------
HOSPITALS - 8.0%
State Dormitory Authority:
   New Island Hospital,
   Series 1999 B,
     5.750% 07/01/19                 1,000,000    1,066,680
   Sloan Kettering Cancer Center,
   Series 1998,
     5.500% 07/01/23                 1,000,000    1,064,650
   St. Francis Hospital,
   Series 1999 A,
     5.500% 07/01/29                 1,000,000    1,017,830
----------------------------------------------------------------
                                                  3,149,160
----------------------------------------------------------------
NURSING HOME - 2.7%
Syracuse Housing Authority,
   Loretto Rest, Series 1997 A,
     5.700% 08/01/27                 1,000,000    1,036,450
----------------------------------------------------------------

----------------------------------------------------------------

                                         PAR        VALUE
----------------------------------------------------------------

HOUSING - 3.0%
ASSISTED LIVING/SENIOR - 0.4%
Huntington Housing Authority,
   Gurwin Jewish Senior Center,
   Series 1999,
     6.000% 05/01/29                $  200,000   $  175,000
----------------------------------------------------------------
SINGLE FAMILY - 2.6%
State Mortgage Agency,
   Series 1999 8-2,
     5.650% 04/01/30                 1,000,000    1,015,740
----------------------------------------------------------------

----------------------------------------------------------------
OTHER - 2.1%
OTHER - 0.6%
New York City, Tobacco Trust II,
   Series 2001,
     5.750% 06/01/43                   250,000      243,478
----------------------------------------------------------------
POOL/BOND BANK - 1.5%
State Environmental Facilities Corp.,
   Series 2000,
     5.700% 07/15/22                   540,000      570,407
----------------------------------------------------------------

----------------------------------------------------------------
OTHER REVENUE - 2.7%
RECREATION - 2.7%
New York City Cultural Trust,
   American Museum of Natural
   History, Series 1997 A,
     5.650% 04/01/22                 1,000,000    1,036,970
----------------------------------------------------------------

----------------------------------------------------------------
TAX-BACKED - 27.7%
LOCAL GENERAL OBLIGATIONS - 4.7%
New York City:
   Series 1998 B,
     5.375% 08/01/22                 1,000,000    1,018,060
   Series 1998 D,
     5.250% 08/01/21                   500,000      506,215
PR Commonwealth of Puerto Rico
   Municipal Finance Agency,
   Series 1999 A,
     5.500% 08/01/23                   300,000      313,794
----------------------------------------------------------------
                                                  1,838,069
----------------------------------------------------------------
SPECIAL NON-PROPERTY TAX - 10.7%
Metropolitan Transportation Authority,
   Series 1998 A,
     5.250% 07/01/28 (b)             1,000,000    1,101,590
New York City Transitional Finance
   Authority, Series 2000 A,
     5.750% 08/15/24                 1,500,000    1,580,535




See notes to investment portfolio.

2


INVESTMENT PORTFOLIO (CONTINUED)

May 31, 2002 (Unaudited) (New York unless otherwise stated)

MUNICIPAL BONDS (CONTINUED)              PAR        VALUE
----------------------------------------------------------------
TAX-BACKED (CONTINUED)
SPECIAL NON-PROPERTY TAX (CONTINUED)
PR Commonwealth of Puerto Rico,
   Public Building Authority,
   Series 1997 B,
     5.000% 07/01/27                $1,000,000   $  993,310
VI Virgin Islands Public Finance
   Authority, Series 1999,
     6.500% 10/01/24                   500,000      538,285
----------------------------------------------------------------
                                                  4,213,720
----------------------------------------------------------------
STATE APPROPRIATED - 8.4%
State Dormitory Authority:
   City University of New York,
   Series 1997 I,
     5.125% 07/01/27                 1,000,000      981,270
   New York University,
   Series 1999 C,
     5.500% 07/01/29                 1,200,000    1,230,108
State Urban Development Corp.,
   Series 1999 C,
     6.000% 01/01/29                 1,000,000    1,067,900
----------------------------------------------------------------
                                                  3,279,278
----------------------------------------------------------------
STATE GENERAL OBLIGATIONS - 3.9%
PR Commonwealth of Puerto Rico,
   Series 1997,
     5.375% 07/01/25                 1,500,000    1,522,215
----------------------------------------------------------------

----------------------------------------------------------------
TRANSPORTATION - 18.8%
AIRPORTS - 8.5%
Albany County Airport Authority,
   Series 1997,
     5.500% 12/15/19                 1,500,000    1,543,740
Niagara Frontier Transportation
   Authority, Series 1999 A,
     5.625% 04/01/29                 1,750,000    1,800,750
----------------------------------------------------------------
                                                  3,344,490
----------------------------------------------------------------
TOLL FACILITIES - 4.1%
Triborough Bridge & Tunnel
   Authority, Series 1992 Y,
     6.125% 01/01/21                 1,390,000    1,596,095
----------------------------------------------------------------
TRANSPORTATION - 6.2%
Metropolitan Transportation Authority,
   Series 2002 A,
     5.000% 11/15/30                 1,500,000    1,438,470
New York City Transportation Authority,
   Series 1999 A,
     5.250% 01/01/29                 1,000,000      999,950
----------------------------------------------------------------
                                                  2,438,420
----------------------------------------------------------------


                                         PAR        VALUE
----------------------------------------------------------------
UTILITY - 14.0%
INDEPENDENT POWER PRODUCER - 1.9%
New York City Industrial Development
   Agency, Brooklyn Navy Yard Partners,
   Series 1997,
     5.650% 10/01/28                $  300,000   $  292,554
Port Authority of New York &
   New Jersey, KIAC Partners,
   Series 1996 IV,
     6.750% 10/01/19                   200,000      207,000
PR Commonwealth of Puerto Rico
   Industrial, Educational, Medical
   & Environmental Cogeneration
   Facilities, AES Project,
   Series 2000,
     6.625% 06/01/26                   250,000      258,987
----------------------------------------------------------------
                                                    758,541
----------------------------------------------------------------
MUNICIPAL ELECTRIC - 5.1%
GM Guam Power Authority,
   Series 1999 A,
     5.250% 10/01/34                 1,000,000    1,003,810
Long Island Power Authority,
   Series 1998 A,
     5.250% 12/01/26                 1,000,000      997,270
----------------------------------------------------------------
                                                  2,001,080
----------------------------------------------------------------
WATER & SEWER - 7.0%
Albany Municipal Water Finance
   Authority, Series 2000 A,
     6.375% 12/01/17                   200,000      227,268
Buffalo Municipal Water Finance
   Authority, Series 1999,
     6.000% 07/01/29                 1,450,000    1,553,806
Clifton Park Water Authority,
   Series 1999 A,
     5.000% 10/01/29                 1,000,000      963,860
----------------------------------------------------------------
                                                  2,744,934
----------------------------------------------------------------
TOTAL INVESTMENTS - 97.0%
   (cost of $34,857,543) (c)                     38,016,052
----------------------------------------------------------------
OTHER ASSETS & LIABILITIES, NET - 3.0%            1,164,760
----------------------------------------------------------------
NET ASSETS* - 100.0%                            $39,180,812
----------------------------------------------------------------



See notes to investment portfolio.

3


INVESTMENT PORTFOLIO (CONTINUED)
May 31, 2002 (Unaudited)

NOTES TO INVESTMENT PORTFOLIO:
--------------------------------------------------------------------------------
(a) Settlement of this security is on a delayed delivery basis.
(b) This security, or a portion thereof with a market value of $110,159, is
    being used to collateralize open futures contracts.
(c) Cost for generally accepted accounting principles is $34,857,543. Cost for
    federal income tax purposes is $34,851,373. The difference between cost for
    generally accepted accounting principles and cost on a tax basis is related
    to amortization/accretion tax elections on fixed income securities.

Short futures contracts open at May 31, 2002:

                          Par Value                       Unrealized
                         Covered by          Expiration  Depreciation
         Type             Contracts             Month     at 05/31/02
---------------------------------------------------------------------
Municipal Bond Index            $3,500,000     September    $(11,011)
10 Year U.S. Treasury Note       2,100,000     September     (14,986)
                                                           ----------
                                                            $(25,997)
                                                           ----------

Summary of securities by insurer:

                                                  % of Total
        Insurer                                   Investments
--------------------------------------------------------------
MBIA Insurance Corp.                                  37.3%
Financial Security Assurance, Inc.                    16.8
Ambac Assurance Corp.                                 13.4
Financial Guaranty Insurance Corp.                     6.0
Asset Guaranty Assurance Co.                           4.0
Federal Housing Administration                         2.7
GNMA Collateralized                                    1.3
ACA Financial Guaranty Corp.                           0.9
                                                     -----
                                                     82.4%
                                                     -----

* Net assets represent both Common Shares and Auction Preferred Shares.

See notes to financial statements.

4


STATEMENT OF ASSETS & LIABILITIES
May 31, 2002 (Unaudited)

ASSETS:
Investments, at cost                            $34,857,543
------------------------------------------------------------------
Investments, at value                           $38,016,052
Cash                                                989,690
Receivable for:
   Interest                                         689,577
   Futures variation margin                           3,303
Expense reimbursement due from Advisor               17,695
Deferred Trustees' compensation plan                  1,232
------------------------------------------------------------------
   Total Assets                                  39,717,549
------------------------------------------------------------------
LIABILITIES:
Payable for:
   Investments purchased on a delayed
      delivery basis                                502,552
   Distributions-- preferred shares                   1,289
   Management fee                                    11,639
   Pricing and bookkeeping fees                       3,650
   Trustees' fee                                         54
Deferred Trustees' fee                                1,232
Other liabilities                                    16,321
------------------------------------------------------------------
   Total Liabilities                                536,737
------------------------------------------------------------------
Auction Preferred Shares (564 shares issued
   and outstanding at $25,000 per share)         14,100,000
------------------------------------------------------------------
COMPOSITION OF NET ASSETS APPLICABLE
   TO COMMON SHARES:
Paid-in capital-- common shares                 $22,687,782
Undistributed net investment income                 121,073
Accumulated net realized loss                      (860,555)
Net unrealized appreciation (depreciation) on:
   Investments                                    3,158,509
   Futures contracts                                (25,997)
------------------------------------------------------------------
Net assets at value applicable to 1,606,900
   common shares of beneficial interest
   outstanding                                  $25,080,812
------------------------------------------------------------------
Net asset value per common share                $     15.61
------------------------------------------------------------------


STATEMENT OF OPERATIONS
For the Six Months Ended May 31, 2002 (Unaudited)

INVESTMENT INCOME:
Interest                                         $1,040,336
------------------------------------------------------------------
EXPENSES:
Management fee                                       68,233
Pricing and bookkeeping fees                         19,030
Preferred shares remarketing
   commissions                                       17,694
Transfer agent fee                                   13,708
Audit fee                                            12,934
Reports to shareholders                              12,052
Trustees' fee                                         3,179
Other expenses                                        5,831
------------------------------------------------------------------
   Total Expenses                                   152,661
Fees and expenses waived or reimbursed
   by Advisor                                       (44,873)
Custody earnings credit                                (902)
------------------------------------------------------------------
   Net Expenses                                     106,886
------------------------------------------------------------------
Net Investment Income                               933,450
------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN
   (LOSS) ON INVESTMENTS AND FUTURES
   CONTRACTS:
Net realized gain (loss) on:
   Investments                                      226,489
   Futures contracts                                 (1,146)
------------------------------------------------------------------
     Net realized gain                              225,343
------------------------------------------------------------------
Net change in unrealized appreciation/depreciation on:
   Investments                                     (342,470)
   Futures contracts                                (72,606)
------------------------------------------------------------------
     Net change in unrealized
       appreciation/depreciation                   (415,076)
------------------------------------------------------------------
Net Loss                                           (189,733)
------------------------------------------------------------------
Net Increase in Net Assets from Operations          743,717
------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO
   PREFERRED SHAREHOLDERS:
From net investment income                         (102,139)
------------------------------------------------------------------
Increase in Net Assets from Operations
   Applicable to Common Shares                   $  641,578
------------------------------------------------------------------



See notes to financial statements.

5


STATEMENT OF CHANGES IN NET ASSETS

                                  (UNAUDITED)
                                  SIX MONTHS
                                     ENDED      YEAR ENDED
                                    MAY 31,    NOVEMBER 30,
INCREASE (DECREASE) IN NET ASSETS:   2002          2001
--------------------------------------------------------------------
OPERATIONS:
Net investment income             $  933,450    $ 1,889,342
Net realized gain (loss) on
   investments and futures contracts 225,343       (241,059)
Net change in unrealized
   appreciation/depreciation
   on investments and futures
   contracts                        (415,076)     1,455,505
--------------------------------------------------------------------
Net Increase from Operations         743,717      3,103,788
--------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED
   TO PREFERRED SHAREHOLDERS:
From net investment income          (102,139)      (397,551)
--------------------------------------------------------------------
Increase in Net Assets from
   Operations Applicable to
   Common Shares                     641,578      2,706,237
--------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO
   COMMON SHAREHOLDERS:
From net investment income          (923,967)    (1,338,553)
--------------------------------------------------------------------
Total Increase (Decrease) in
   Net Assets Applicable to
      Common Shares                 (282,389)     1,367,684
NET ASSETS APPLICABLE TO
   COMMON SHARES:
Beginning of period               25,363,201     23,995,517
--------------------------------------------------------------------
End of period (including
   undistributed net investment
   income of $121,073 and
   $207,841, respectively)       $25,080,812    $25,363,201
--------------------------------------------------------------------



                                  (UNAUDITED)
                                  SIX MONTHS
                                     ENDED      YEAR ENDED
                                    MAY 31,    NOVEMBER 30,
NUMBER OF FUND SHARES:               2002          2001
--------------------------------------------------------------------
Common Shares:
Outstanding at:
   Beginning of period             1,606,900      1,606,900
--------------------------------------------------------------------
   End of period                   1,606,900      1,606,900
--------------------------------------------------------------------
Preferred Shares:
Outstanding at:
   Beginning of period                   564            564
--------------------------------------------------------------------
   End of period                         564            564
--------------------------------------------------------------------




See notes to financial statements.

6


NOTES TO FINANCIAL STATEMENTS

May 31, 2002 (Unaudited)

NOTE 1. ACCOUNTING POLICIES

ORGANIZATION:

Colonial New York Insured Municipal Fund (the "Fund") is a Massachusetts
business trust registered under the Investment Company Act of 1940 (the "Act"),
as amended, as a non-diversified, closed-end management investment company. The
Fund's investment goal is to provide current income, generally exempt from
ordinary federal income tax and New York State and City personal income taxes.
The Fund is authorized to issue an unlimited number of common shares of
beneficial interest and 564 Auction Preferred Shares ("APS").

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenue and expenses during the reporting period. Actual
results could differ from those estimates. The following is a summary of
significant accounting policies consistently followed by the Fund in the
preparation of its financial statements.

SECURITY VALUATION AND TRANSACTIONS:

Debt securities generally are valued by a pricing service based upon market
transactions for normal, institutional-size trading units of similar securities.
When management deems it appropriate, an over-the-counter or exchange bid
quotation is used.

Options are valued at the last sale price, or in the absence of a sale, the mean
between the last quoted bid and asking price.

Futures contracts are valued based on the difference between the last sale price
and the opening price of the contract.

Short-term obligations with a maturity of 60 days or less are valued at
amortized cost.

Investments for which market quotations are not readily available are valued at
fair value under procedures approved by the Board of Trustees.

Security transactions are accounted for on the date the securities are
purchased, sold or mature.

Cost is determined and gains (losses) are based upon the specific identification
method for both financial statement and federal income tax purposes.

The Fund may trade securities on other than normal settlement terms. This may
increase the risk if the other party to the transaction fails to deliver and
causes the Fund to subsequently invest at less advantageous prices.

FEDERAL INCOME TAXES:

Consistent with the Fund's policy to qualify as a regulated investment company
and to distribute all of its taxable and tax-exempt income, no federal income
tax has been accrued.

 At November 30, 2001, capital loss carryforwards available (to the extent
provided in regulations) to offset future realized gains were as follows:

      YEAR OF EXPIRATION        CAPITAL LOSS CARRYFORWARD
       -----------------         -----------------------
             2008                       $ 284,413

Expired capital loss carryforwards, if any, are recorded as a reduction of
paid-in capital.

INTEREST INCOME, DEBT DISCOUNT AND PREMIUM:

Interest income is recorded on the accrual basis. Original issue discount is
accreted to interest income over the life of the security with a corresponding
increase in the cost basis. Premium is amortized against interest income with a
corresponding decrease in the cost basis.

Effective December 1, 2001, the Fund adopted the provisions of the AICPA Audit
and Accounting Guide for Investment Companies and began accreting discount on
all debt securities. The cumulative effect of this accounting change did not
impact total net assets, but resulted in a $5,888 increase in cost of securities
and a corresponding $5,888 decrease in net unrealized appreciation, based on
securities held by the Fund on December 1, 2001.

The effect of this change for the six months ended May 31, 2002 was to increase
net investment income by $1,753, increase net unrealized depreciation by $282
and decrease realized gains by $1,471. The Statement of Changes in Net Assets
and the Financial Highlights for prior periods have not been restated to reflect
this change.

DISTRIBUTIONS TO SHAREHOLDERS:

Distributions to common shareholders are recorded on the ex-date.

The amount and character of income and gains to be distributed are determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles. Reclassifications are made to the Fund's capital accounts
to reflect income and gains available for distribution (or available capital
loss carryforwards) under income tax regulations.

7


NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Distributions to preferred shareholders are recorded daily and are payable at
the end of each dividend period. Each dividend payment period for the APS is
generally seven days. The applicable dividend rate for the APS on May 31, 2002
was 1.24%. For the six months ended May 31, 2002, the Fund declared dividends to
Auction Preferred shareholders amounting to $102,139 representing an average APS
dividend rate of 1.44%.

NOTE 2. FEES AND COMPENSATION PAID TO AFFILIATES

MANAGEMENT FEE:

Colonial Management Associates, Inc. (the "Advisor") is the investment advisor
of the Fund and furnishes accounting and other services and office facilities
for a monthly fee equal to 0.65% annually of the Fund's average weekly net
assets. Through November 30, 2004, the Advisor has contractually agreed to waive
a portion of the fee so that it will not exceed 0.35% annually.

BOOKKEEPING FEE:

The Advisor is responsible for providing pricing and bookkeeping services to the
Fund under a Pricing and Bookkeeping Agreement. Under a separate agreement (the
"Outsourcing Agreement"), the Advisor has delegated those functions to State
Street Bank and Trust Company ("State Street"). The Advisor pays fees to State
Street under the Outsourcing Agreement.

Under its pricing and bookkeeping agreement with the Fund, the Advisor receives
from the Fund an annual flat fee of $10,000, paid monthly, and in any month that
the Fund's average weekly net assets are more than $50 million, a monthly fee
equal to the average weekly net assets of the Fund for that month multiplied by
a fee rate that is calculated by taking into account the fees payable to State
Street under the Outsourcing Agreement.

EXPENSE LIMITS:

The Advisor has voluntarily agreed to waive fees and bear certain Fund expenses
to the extent that total expenses (exclusive of management fees, brokerage
commissions, interest, taxes and extraordinary expenses, if any) exceed 0.20%
annually of the Fund's average weekly net assets. This arrangement may be
modified or terminated by the Advisor at any time.

OTHER:

The Fund pays no compensation to its officers, all of whom are employees of the
Advisor or its affiliates.

The Fund's Independent Trustees may participate in a deferred compensation plan
which may be terminated at any time. Obligations of the plan will be paid solely
out of the Fund's assets. The Fund has an agreement with its custodian bank
under which $902 of custody fees were reduced by balance credits for the six
months ended May 31, 2002. The Fund could have invested a portion of the assets
utilized in connection with the expense offset arrangement in an
income-producing asset if it had not entered into such an agreement.

NOTE 3. PREFERRED SHARE OFFERING

The Fund currently has outstanding 564 APS. The APS are redeemable at the option
of the Fund on any dividend payment date at the redemption price of $25,000 per
share, plus an amount equal to any dividends accumulated on a daily basis unpaid
through the redemption date (whether or not such dividends have been declared).

Under the Act, the Fund is required to maintain asset coverage of at least 200%
with respect to the APS as of the last business day of each month in which any
APS are outstanding. Additionally, the Fund is required to meet more stringent
asset coverage requirements under the terms of the APS and in accordance with
the guidelines prescribed by the rating agencies. Should these requirements not
be met, or should dividends accrued on the APS not be paid, the Fund may be
restricted in its ability to declare dividends to common shareholders or may be
required to redeem certain of the APS. At May 31, 2002, there were no such
restrictions on the Fund.

Certain reclassifications have been made relating to the presentation of the APS
in the Statement of Changes in Net Assets for the year ending November 30, 2001
and the financial highlights for the year ending November 30, 2001 and 2000 to
conform to current requirements.

NOTE 4. PORTFOLIO INFORMATION

INVESTMENT ACTIVITY:

For the six months ended May 31, 2002, purchases and sales of investments, other
than short-term obligations, were $2,113,891 and $2,668,642, respectively.

8


NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Unrealized appreciation (depreciation) at May 31, 2002, based on cost of
investments for federal income tax purposes, was:

Gross unrealized appreciation                    $3,174,299
 Gross unrealized depreciation                       (9,620)
-------------------------------------------------------------
   Net unrealized appreciation                   $3,164,679
-------------------------------------------------------------

OTHER:

There are certain risks arising from geographic concentration in any state.
Certain revenue or tax related events in a state may impair the ability of
certain issuers of municipal securities to pay principal and interest on their
obligations.

The Fund may focus its investments in certain industries, subjecting it to
greater risk than a fund that is more diversified.

The Fund may invest in municipal and Treasury bond futures contracts and
purchase and write options on futures. The Fund may invest in these instruments
to hedge against the effects of changes in the value of portfolio securities due
to anticipated changes in interest rates and/or market conditions, for duration
management, or when the transactions are economically appropriate to the
reduction of risk inherent in the management of the Fund and not for trading
purposes. The use of futures contracts and options involves certain risks, which
include (1) imperfect correlation between the price movement of the instruments
and the underlying securities, (2) inability to close out positions due to
different trading hours, or the temporary absence of a liquid market, for either
the instrument or the underlying securities or (3) an inaccurate prediction by
the Advisor of the future direction of interest rates. Any of these risks may
involve amounts exceeding the amount recognized in the Fund's Statement of
Assets and Liabilities at any given time.

Upon entering into a futures contract, the Fund deposits cash or securities with
its custodian in an amount sufficient to meet the initial margin requirement.
Subsequent payments are made or received by the Fund equal to the daily change
in the contract value and are recorded as variation margin payable or receivable
and offset in unrealized gains or losses. The Fund recognizes a realized gain or
loss when the contract is closed or expires. Refer to the Fund's Investment
Portfolio for a summary of open futures contracts at May 31, 2002.

9






FINANCIAL HIGHLIGHTS

Selected data for a share outstanding throughout each period is as follows
(common shares unless otherwise noted):

                                                                              (UNAUDITED)
                                                                              SIX MONTHS                                 PERIOD
                                                                                 ENDED                                    ENDED
                                                                                MAY 31,     YEAR ENDED NOVEMBER 30,   NOVEMBER 30,
------------------------------------------------------------------------------------------------------------------------------------
                                                                                 2002         2001         2000        1999(A)
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                           
NET ASSET VALUE, BEGINNING OF PERIOD                                         $     15.78   $    14.93   $    14.24     $   14.33
------------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income                                                               0.58(b)(c)   1.18(c)      1.27(d)       0.02
Net realized and unrealized gain (loss) on investments and futures contracts       (0.11)(b)     0.75         0.86         (0.08)
------------------------------------------------------------------------------------------------------------------------------------
   Total from Investment Operations                                                 0.47         1.93         2.13         (0.06)
------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO PREFERRED SHAREHOLDERS:
From net investment income                                                         (0.06)       (0.25)       (0.33)           --
------------------------------------------------------------------------------------------------------------------------------------
   Total from Investment Operations Applicable to Common Shareholders               0.41         1.68         1.80         (0.06)
------------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO COMMON SHAREHOLDERS:
From net investment income                                                         (0.58)       (0.83)       (0.93)           --
------------------------------------------------------------------------------------------------------------------------------------
LESS SHARE TRANSACTIONS:
Offering costs-- common shares                                                        --           --           --         (0.03)
Commission and offering costs--preferred shares                                       --           --        (0.18)           --
------------------------------------------------------------------------------------------------------------------------------------
   Total Share Transactions                                                           --           --        (0.18)        (0.03)
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD                                               $     15.61  $     15.78  $     14.93      $  14.24
------------------------------------------------------------------------------------------------------------------------------------
Market price per share--common shares                                        $     15.38  $     14.60  $     14.63      $  15.06
------------------------------------------------------------------------------------------------------------------------------------
Total return--based on market value-- common shares (e)(f)                          9.53%(g)     5.63%        3.58%         0.41%(g)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:
Expenses (h)(i)                                                                   0.86%(j)(k)    0.81%(k)     0.32%(k)      0.20%(j)
Net investment income (h)(i)                                                      7.49%(b)(j)    7.49%        8.86%         5.20%(j)
Net investment income (h)(i)                                                      6.67%(b)(j)(l) 5.91%(l)     6.53%(l)      5.20%(j)
Waiver/reimbursement (i)                                                          0.36%(j)       0.57%        0.18%           --
Portfolio turnover rate                                                              6%(g)          4%          32%            0%(g)
Net assets, end of period (000's)--common shares                              $ 25,081       $ 25,363     $ 23,996      $ 22,873

(a)  The Fund commenced investment operations on November 19, 1999.
(b)  Effective December 1, 2001, the Fund adopted the provision of the AICPA
     Audit and Accounting Guide for Investment Companies and began accreting
     discount on all debt securities. The effect of this change, for the six
     months ended May 31, 2002, was to increase the ratio of net investment
     income to average net assets from 7.48% to 7.49% and increase the ratio of
     net investment income (adjusted for dividend payments to preferred
     shareholders) from 6.66% to 6.67%. The impact to the net investment income
     and net realized and unrealized loss per share was less than $0.01. Per
     share data and ratios for periods prior to May 31, 2002 have not been
     restated to reflect this change in presentation.
(c)  Per share data was calculated using average shares outstanding during the
     period.
(d)  The per share net investment income amount does not reflect the period's
     reclassification of differences between book and tax basis net investment
     income.
(e)  Total return at market value assuming all distributions reinvested at
     prices calculated in accordance with the Dividend Reinvestment Plan.
(f)  Had the Advisor not waived or reimbursed a portion of expenses, total
     return would have been reduced.
(g)  Not annualized.
(h)  The benefits derived from custody credits and directed brokerage
     arrangements, if applicable, had no impact.
(i)  Ratios reflect average net assets available to common shares only.
(j)  Annualized.
(k)  Ratios calculated using average net assets of the Fund equals 0.55%, 0.52%
     and 0.20% for the six months ended May 31, 2002, and for the years ended
     November 30, 2001 and November 30, 2000, respectively.
(l)  Ratios reflect reduction for dividend payments to preferred shareholders.


10




FINANCIAL HIGHLIGHTS (CONTINUED)

ASSET COVERAGE REQUIREMENTS

                                                                                                     INVOLUNTARY
                                                                                         ASSET       LIQUIDATING     AVERAGE
                                                                       TOTAL AMOUNT    COVERAGE      PREFERENCE   MARKET VALUE
                                                                        OUTSTANDING    PER SHARE      PER SHARE     PER SHARE
---------------------------------------------------------------------------------------------------------------------------------
                                                                                                      
05/31/02 *                                                              $14,100,000     $69,470        $25,002       $25,000
11/30/01                                                                 14,100,000      69,970         25,003        25,000
11/30/00 **                                                              14,100,000      67,545         25,014        25,000

*  Unaudited.
** On December 30, 1999, the Fund began offering Auction Preferred Shares.





11


SHAREHOLDER MEETING RESULTS

RESULTS OF ANNUAL MEETING OF SHAREHOLDERS

On May 22, 2002, the Annual Meeting of Shareholders of the Fund was held to
conduct a vote for or against the approval of the following Items listed on the
Fund's Proxy Statement for said Meeting. On March 1, 2002, the record date for
the Meeting, the Fund had 1,606,900 common shares outstanding. The votes cast
were as follows:

PROPOSAL 1.                             FOR      WITHHELD
ELECTION OF TRUSTEES:

   Douglas A. Hacker                 1,456,485     15,242
   Janet Langford Kelly              1,457,485     14,242
   Joseph R. Palombo                 1,456,485     15,242



On March 1, 2002, the record date for the Meeting, the Fund had 564 preferred
shares outstanding. The votes cast were as follows:

PROPOSAL 1.                             FOR      WITHHELD
ELECTION OF TRUSTEES:

   Douglas A. Hacker                    397           0
   Janet Langford Kelly                 397           0
   Salvatore Macera                     397           0
   Joseph R. Palombo                    397           0
   Thomas E. Stitzel                    397           0



12


DIVIDEND REINVESTMENT PLAN

1. You, BankBoston, NA*, will act as Agent for me, and will open an account for
me under the Dividend Reinvestment Plan with the same registration as my shares
of the Fund are currently registered. You will effect the dividend reinvestment
option on my behalf as of the first record date for an income dividend or
capital gain distribution ("distribution"), separately or collectively, after
you receive the authorization duly executed by me.

2. Whenever the Fund declares a distribution payable in the Fund's shares of
beneficial interest ("shares") or cash at the option of the shareholder, I
hereby elect to take such distribution entirely in shares, subject to the terms
of this Plan. If on the valuation date the Fund's net asset value per share is
less than the market price (including estimated brokerage commissions), you
shall on the payable date automatically receive for my account from the Fund
that number of newly-issued shares that the cash otherwise receivable by me
would purchase if the purchase price per share equaled the higher of: (a) net
asset value per share on the valuation date, or (b) 95% of market price (not
including estimated brokerage commission) on the payable date; except if the
market price (not including estimated brokerage commissions) on the payable date
is less than 95% of the net asset value per share on the valuation date, you
shall receive a distribution of cash from the Fund and shall apply the amount of
such distribution to the purchase in the open market of shares of my account,
commencing on the business day after the payable date, subject to the condition
that such purchases must be made at a "discount" during the remainder of the
"buying period." "Discount" is defined as a market price per share (including
estimated brokerage commissions) which is lower than the most recently
determined net asset value per share (as calculated from time to time). "Buying
period" shall mean the period commencing the first business day after the
valuation date and ending at the close of business on the business day preceding
the "ex" date for the next distribution. The valuation date will be the last
business day of the week preceding the week of the payable date.

3. Should the Fund's net asset value per share exceed the market price
(including estimated brokerage commissions) on the valuation date for a
distribution, you shall receive for my account a distribution in cash from the
Fund and shall apply the amount of such distribution on my shares to the
purchase in the open market of shares for my account commencing on the first
business day after the valuation date, subject to the condition that such
purchases must be made at a discount during the buying period.

4. In the event you are instructed to purchase shares in the open market
pursuant to paragraph 2 or 3 hereof, and you are unable for any reason to invest
the full amount of the distribution in shares acquired in open-market purchases
at a discount during the buying period, you will invest the uninvested portion
of such distribution in newly-issued shares at the close of business at the end
of such buying period at the higher of: (a) net asset value determined at such
close, or (b) 95% of the market price (not including estimated brokerage
commissions) at such close.

5. You may not acquire newly-issued shares after the valuation date unless you
have received a legal opinion that registration of such shares is not required
under the Securities Act of 1933, as amended, or unless the shares to be issued
are registered under such an Act.

6. For all purposes of the Plan: (a) the market price of the shares on a
particular date shall be the last sales price on the New York Stock Exchange on
that date, or if there is no sale on such Exchange on that date, then the mean
between the closing bid and asked quotations for such shares on such Exchange on
such date (in either case including or not including estimated brokerage
commissions as provided above) and (b) net asset value per share of the shares
on a particular date shall be as determined by or on behalf of the Fund.

7. Open-market purchases provided for above may be made on any securities
exchange where the shares are traded, in the over-the-counter market or in
negotiated transactions and may be on such terms as to price, delivery and
otherwise as you shall determine. My cash funds held by you uninvested will not
bear interest and it is understood that, in any event, you shall have no
liability in connection with any inability to purchase shares within 30 days
after the initial date of such purchase as herein provided, or with the timing
of any purchases effected. You shall nave no responsibility as to the value of
the shares acquired for my account. For the purposes of open-market purchases
with respect to the Plan you may commingle my funds with those of other
shareholders of the Fund for whom you similarly act as Agent, and the average
price (including brokerage commissions) of all shares purchased by you as Agent
shall be the price per share allocated to me in connection therewith.

8. You may hold my shares acquired pursuant to my authorization, together with
the shares of other shareholders of the Fund acquired pursuant to similar
authorizations, in non-certificate form in your name or that of your nominee.
You will forward to me any proxy solicitation material and will vote any shares
so held for me only in accordance with the proxy returned by me to the Fund.
Upon my written request, you will deliver to me, without charge, a certificate,
or certificates for the full shares.

*  EquiServe Trust Company, N.A. currently serves as Agent under the Dividend
   Reinvestment Plan.



13


DIVIDEND REINVESTMENT PLAN (CONTINUED)

9. You will confirm to me each investment made for my account as soon as
practicable but not later than 60 days after the date thereof. Although I may
from time to time have an undivided fractional interest (computed to three
decimal places) in a share, no certificates for a fractional share will be
issued. However, distributions on fractional shares will be credited to my
account. In the event of termination of my account under the Plan, you will sell
such undivided fractional interests at the market value of the shares at the
time of termination and send the net proceeds to me.

10. Any stock dividends or split shares distributed by the Fund on shares held
by you for me will be credited to my account. In the event that the Fund makes
available to its shareholders rights to purchase additional shares or other
securities, the shares held for me under the Plan will be added to other shares
held by me in calculating the number of rights to be issued to me.

11. Your fee for service described in this Plan will be paid by the Fund. I will
be charged a pro rata share of brokerage commission on all open-market
purchases. 12. I may terminate my account under the Plan by notifying you in
writing. Such termination will be effective immediately if my notice is received
by you prior to the record date of subsequent distributions. The Plan may be
terminated by you or the Fund upon notice in writing mailed to me at least 30
days prior to any record date for the payment of any distribution of the Fund.
Upon any termination you will cause a certificate or certificates for the full
shares held for me under the Plan and the proceeds from the sales of any
fractional shares to be delivered to me without charge. If I elect by notice to
you in writing in advance of such termination to have you sell part or all of my
shares and remit the proceeds to me, you are authorized to deduct brokerage
commission for this transaction from the proceeds.

If I decide to terminate my account under the Plan, I may request that all my
Plan shares, both full and fractional, be sold. The per share price may fall
during the period between my request for sale and the sale in the open market
which will be made within ten trading days after the Agent receives my request.
The proceeds of the sale less a $2.50 service fee, plus any brokerage commission
will be mailed to me after the settlement of funds from the brokerage firm. The
settlement is three business days after the sale of shares.

13. These Terms and Conditions may be amended or supplemented by you or the Fund
at any time or times but, except when necessary or appropriate to comply with
applicable law or the rules or policies of the Securities and Exchange
Commission or any other regulatory authority, only by mailing to me appropriate
written notice at least 30 days prior to the effective date thereof. The
amendment or supplement shall be deemed to be accepted by me unless, prior to
the effective date thereof, you receive written notice of the termination of my
account under the Plan. Any such amendment may include an appointment by you in
your place and stead of successor Agent under these Terms and Conditions, with
full power and authority to perform all or any of the acts to be performed by
the Agent under these Terms and Conditions. Upon any such appointment of any
Agent for the purpose of receiving distributions, the Fund will be authorized to
pay to such successor Agent, for my account, all distributions payable on shares
held in my name or under the Plan for retention or application by such successor
Agent as provided in these Terms and Conditions.

14. You shall at all times act in good faith and agree to use your best efforts
within reasonable limits to insure the accuracy of all services performed under
this Agreement and to comply with applicable law, but assume no responsibility
and shall not be liable for loss or damage due to errors unless such error is
caused by your negligence, bad faith or willful misconduct, or that of your
employees.

15. These Terms and Conditions shall be governed by the laws of the Commonwealth
of Massachusetts.



14


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TRANSFER AGENT


IMPORTANT INFORMATION ABOUT THIS REPORT

The Transfer Agent for Colonial New York Insured Municipal Fund is:

EquiServe Trust Company, N.A.
150 Royall Street
Canton, MA  02021
1-800-730-6001

The fund mails one shareholder report to each shareholder address. Shareholders
can order additional reports by calling 800-345-6611. In addition,
representatives at that number can provide shareholders information about the
fund.

Financial advisors who want additional information about the fund may speak to a
representative at 800-426-3750.

This report has been prepared for shareholders of Colonial New York Insured
Municipal Fund.



COLONIAL NEW YORK INSURED MUNICIPAL FUND      SEMIANNUAL REPORT



                                                 IY-03/959J-0502 (07/02) 02/1221