The “you” in “on your side of the field” is the current controller’s field, so as long as “Ultimate Insect LV1” is face-up, it is always “face-up on your side of the field”.
“Ultimate Insect LV1”’s 2nd sentence is a Ignition Effect that is activated by sending “Ultimate Insect LV1” to the Graveyard as a cost. You can chain to this effect.
You cannot activate the effect of “Ultimate Insect LV1” the same turn it is flipped face-up, including by “Book of Taiyou”, etc.