For your Tier 3 form, you are more than welcome to take some thematic elements of creatures / imagery from your character's canon and incorporate them into your design. For this specific monster, however, we're not really seeing "insectoid" in its design -- it looks pretty solidly draconic to us! (For one example, insects broadly do not possess tails, and neither do Faeries.)
We wouldn't allow a Faerie's fog form, even at Tier 3 fog alignment, to look as though it belongs in a different monster category altogether. As such, a direct transformation into this creature would not be permissible. Still, you can theme your design to incorporate elements from this creature -- coloration, proportions, and other superficial traits.
An energy attack, regardless of its presence in the base form, would constitute an ability requiring acquisition. This could be done either through Mana Rewards or as a power bestowed by the Fog God at its appropriate tier. (As a disclaimer, since we do not have any information about this energy attack, this comment should not be taken as guarantee of its acceptance should it be requested; it would need to go through the requisite review first.)
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We wouldn't allow a Faerie's fog form, even at Tier 3 fog alignment, to look as though it belongs in a different monster category altogether. As such, a direct transformation into this creature would not be permissible. Still, you can theme your design to incorporate elements from this creature -- coloration, proportions, and other superficial traits.
An energy attack, regardless of its presence in the base form, would constitute an ability requiring acquisition. This could be done either through Mana Rewards or as a power bestowed by the Fog God at its appropriate tier. (As a disclaimer, since we do not have any information about this energy attack, this comment should not be taken as guarantee of its acceptance should it be requested; it would need to go through the requisite review first.)