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I'd ask for a written reason why not - not confirming to FMVSS at time of manufacture could be a stupid as not having a reverse light, or not enough reflectors. Other times the vehicle will state somewhere that it doesn't conform to FMVSS because the manufacturer didn't want to go through the...

I have a 40' 1984 Gillig Phantom transit bus insured with Progressive (via USAA), I am aware in the policy declarations I had to confirm it was not a school-bus. It may simply be that the people you talked to had a specific military vehicle type in mind when you were talking to them which did...