I have the funds deposited and have the appointment, so I think I will go to the consulate in Laos to get the Non O. Then I will seek the extension for 1 year.
I think I am wrong about being told that I need insurance for the Non O. I think they said they could issue the Non OA, and that would require insurance, so they recommended that I go to Laos for the Non O. I must surmise that the office cannot do the Non O. At the time I visited the office I had plenty of time remaining on my TR and had months remaining to reenter for another 60 days.