said by Tomek:
Maybe it all changed recently, but I my brother had his phone stolen and we found kid that activated it and used it. I then also tried activating phone that was initially lost by my friend (he got a replacement and recovered it few weeks later) and were also able to simply activated it, but that was like 3 years ago
again, lost does not mean stolen. The phone has to be reported as stolen, not lost, or verizon will not care. Even if he gets a replacement thru the insurance program, unless he specifies that it was stolen, it does not get blocked. Also, with "your brother", i am betting he didnt report the phone as stolen to verizon, only lost.