Cut out an animation of a video clip and insert into an other
When you create a mask around a part of a video it is called rotoscoping. Premiere elements doesn't have the capabilities to do rotoscoping but there are other free pieces of software which do. The following bits of software are composting software which are designed for composting clips together. 

The first software is Blackmagic fusion https://www.blackmagicdesign.com/uk/products/fusion. Here is a simple tutorial showing you how to rotoscope in it 
                
            . 

The other option is http://natron.fr/. Here is a tutorial on how to rotoscope with it 
                
            . This tutorial is for a slightly different software but should work fine. 

Once you have made the clip in either of these bits of software then export it and import it into premiere elements as a new video file.