what is happening?
The phone it locked to ATT, when I put a sim card in it, it say the sim card is used for specific network, input unlock code to use it.
is it because no sim card in it? I have tried reset the phone, but still the same.
If you haven't already, you might want to factory reset it. This will wipe everything off the device, but that should be a big deal if you received it as loaner. Go to settings - about - reset your phone. The device is SIM locked and can only use an AT&T SIM unless you get en unlock code from AT&T. Not a big issue if you're an AT&T customer, but a pain if you are not. As for using the device without a SIM card, I do this regularly when I switch to my HTC One but still use my 1020 for the camera, etc.
Should not have any issue with testing without a SIM other then the cellular parts that must be expected not to work. I use my Lumia 1020 without a SIM quite frequently since it takes great pictures. When I switch to my HTC One, I still use my 1020 for the camera. The camera on the HTC One just doesn't compare to the Lumia 1020.
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