I think, but do not have the Member Guide in front of me, that only two of the eight tests over the fiscal season have to be at the highest test of the level. They do have to be from four different shows. And you do have to have a median of 60% as a minimum, to qualify.
As far as the prizes, there are separate prizes from both USDF and typically from your registry also. The USDF are standard medals of different colors for First (Gold) Second (Silver) and Third (Bronze). They don’t send anything for placings below Third. They are stamped medals, about 2" across or so, and they come on a looped, lanyard-type ribbon, in different colors of ribbon for the placings.
What your registry sends out, though, is entirely up to them. Some send ribbons for placings First thru Fifth, some only First thru Third, and I think a couple of the very large breed registries go to Sixth or even Eighth places. In my case it’s always been a large, rosette ribbon with really long tails.
Many also send gifts/prizes, typically for First Place only, though sometimes First/Champion and Second/Reserve. Some send out trophies, some send useful items, some send a small token such as a stamped grooming tool, some send ribbons only. It just depends.
I’ve received an embroidered turnout sheet of very nice quality, saddle pads with the registry logo, an embroidered down vest, and (my favorite) a really nice, embroidered nylon and fleece helmet carrier. The embroidery on the items lists all the honors we earned for that season.
In my case because I was riding a somewhat rare/unusual breed in competition, my interest was primarily in “making” the lists in order for another example of the breed to be seen on the various lists. Online, and in the Connection magazine’s annual yearbook issue. The awards when they did come were a thoughtful and welcome bonus to having recognition for just being out there in the public eye.