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                                                              Exhibit (k)(3)(ii)



                        EXPENSE REIMBURSEMENT AGREEMENT


AGREEMENT made this 25th day of October, 1999, by and between COLONIAL INSURED
MUNICIPAL FUND, a Massachusetts business trust (the "Fund"), and COLONIAL
MANAGEMENT ASSOCIATES, INC., a Massachusetts corporation (the "Adviser").

WHEREAS, the Fund and the Adviser have separately entered into an Investment
Management Agreement of even date herewith (the "Management Agreement"), and a
Fee Waiver Agreement of even date herewith (the "Fee Waiver Agreement");

In consideration of the mutual covenants hereinafter contained, and in
connection with the establishment and commencement of operations of the Fund, it
is hereby agreed by and between the parties hereto as follows:

1.  For the period from the commencement of the Fund's operations through
October 31, 2000, the Adviser agrees to reimburse the Fund for expenses (other
than Management Fees payable pursuant to the terms of the Management Agreement
and the Fee Waiver Agreement) incurred by the Fund in excess of an annual rate
of 0.20% of the average weekly net assets of the Fund.

2.  This Agreement, and the Adviser's obligation to so waive expenses hereunder,
shall terminate on the earlier of (a) October 31, 2000 or (b) termination of the
Management Agreement.

3.  Except as provided in paragraph 2 above, this Agreement may be terminated
only by the vote of (a) the Board of Trustees of the Fund, including the vote of
the members of the Board who are not "interested persons" within the meaning of
the Investment Company Act of 1940, and (b) a majority of the outstanding voting
securities of the Fund.

4.  If any provision of this Agreement shall be held or made invalid by a court
decision, statute, rule, or otherwise, the remainder shall not be thereby
affected.



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5.  The Fund's Declaration of Trust is on file with the Secretary of the
Commonwealth of Massachusetts. This Agreement is executed on behalf of the Fund
by the Fund's officers as officers and not individually and the obligations
imposed upon the Fund by this Agreement are not binding upon any of the Fund's
Trustees, officers or shareholders individually but are binding only upon the
assets and property of the Fund.

IN WITNESS WHEREOF, the Fund and the Adviser have caused this Agreement to be
executed on the day and year above written.


                                   COLONIAL INSURED MUNICIPAL FUND


                                   By: /s/ Nancy L. Conlin
                                      -----------------------------
                                      Name:  Nancy L. Conlin
                                      Title: Secretary

                                   Attest: /s/ William J. Ballou
                                          -------------------------
                                      Name:  William J. Ballou
                                      Title: Assistant Secretary


                                   COLONIAL MANAGEMENT ASSOCIATES, INC.


                                   By: /s/ Nancy L. Conlin
                                      -----------------------------
                                      Name:  Nancy L. Conlin
                                      Title: Senior Vice President

                                   Attest: /s/ William J. Ballou
                                          -------------------------
                                      Name:  William J. Ballou
                                      Title: Assistant Secretary


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