Can I sell my "Insurance Phone"

About four months ago my wife lost her phone. She used her insurance and ordered an Identical phone(pink Razr) Minutes after calling in the claim, she found her phone. The cell phone insurance carrier told us, that it was too late. I told them well now I have paid for the deductable, and have an extra phone. The rep said well technically you have to send the old phone back, but since it was put in the system as a lost phone, we are not expecting a return. When we recived the new phone it came with what I think is a standard letter saying to send back the old phone in ten days to avoid additional charges. We never sent it back, and it has been 4 months. Is it safe to sell my new phone to someone. I wasnt sure if it would get tagged in the sysetm when they tried activating it. I thought that since the emei number is new, that maybe anyone who tried calling in to activate should be OK. Any feedback would be great.

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As long as you don't report it lost or stolen after you have sold the phone, there should be no problems.