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The message you are receiving 'Insert SIM' is due to the SIM card not being registered. (ie., it was registered at one time but is not now.) As such, it cannot receive network information. And, your phone sees this SIM as nothing more than a piece of paper stuck in the SIM card slot.
A single SIM card is not used to activate - and then reactivate - an account. To get service on the phone, a new SIM card will need to be purchased.
If you're in doubt as to whether your phone will recognize a SIM, take your phone to one of your cellular provider's stores and let them test it.
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