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If the sim is faulty, then it can cause this problem.
If the phone does the same with different SIM cards, then check the sim contacts in the phone slot, if you cannot find anything wrong, then it is an internal problem, probablu with the circuits connecting to sim card slot on the phone.
First of all the default password for the phones are 1122, secondly about the sim restarting problems, u know its all about network, chinese mobile have put there own configurations in these mobiles, therefore before using your phone, start it without sim and reset factory default.. delete all network configurations and then put your sim and start your phone.. if the problem continues then try putting your sim in another mobile phone and reset factory default for the other phone.. then put the sim again in the nokia or nokLa.. Anyway im tired typing friends.. In case of any further informations just add me on your messengers.. Till possiblem i'll guide you step by step..