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You have an ethical dilemna!!!
You should have just told the insurance company you had a cracked screen, and not told them you lost it..
YES, they do put that ESN in a database, and you will never be able to activate that phone on the networks, UNLESS you figure out how to clone an ESN.. it has been documented.
You did not break a law, per se, as the insurance is meant to replace a broken phone, but your ethical issue is that you are asking about fixing it and then selling it, as you reported it to the insurance as lost...
good luck
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