When you opened the internet application and the account was blocked, didn't you receive any warning? For example, a month ago I received a notification to sign the new Bank regulations. Until I signed this online, I couldn't use the application.
I also read the press from Thailand. Only MULE accounts were suspended. My Thai account only receives money from my European account, so no stress with the problems you reported.
I think I need more information about that insurance and how it can be used. I was referring to the fact that I would not be happy to pay the visa fee twice, or for the fee a short visa O, and when I get to Thailand to pay the fee for the services of a specialized company.