Hoots.
Sorry to say that this is not new. On returning from an overseas tour in 1977 I needed to hire a car but was refused on similar grounds because the insurance company, Zurich, wouldn't cover me (before you ask the licence was clean
)
Hell's Teeth that was 31 years ago - won't these
ever get their feeble minds around this.
From that point on I always stated that I worked for the MOD
... problem solved.