Can an insurance company be liable for the actions of their insured beyond the scope of the policy?

Not for the acts of its INSURED, but it can potentially liable beyond the policy for its own actions in refusing to settle in bad faith.  The insurance company has no obligation to third parties; its obligation is to its insured pursuant to the insurance contract.  If the insurance company's wrongful acts damage its insured, it can be liable beyond the policy limits.   For example, if there is a $100,000 policy in place and a covered accident causing $1 million in damages occurs, the insurance company's liability is $100,000.  But if the injured party offers to settle for $100,000 and the insurance company refuses to settle, and the injured party eventually gets a judgment against the insured for $1 million because the insurance company refused in bad faith to settle the case for $100,000, it could be liable to its insured for the $900,000 difference.