Terra40, I've encountered the same problem. We had an iPhone 4s that's out of contract with Verizon and we gave it to my parents who live in New Zealand. They're being told that the phone is locked when trying to use a sim card from New Zealand. We also gave them an HTC One M8, which worked no problem so it's not an issue with the sim card, or the network over there.
@winterbaby18, Thanks for posting the info. I've seen the same details on the Verizon website, but it appears that our phone really is locked.
Verizon, can you help with this?