Preheat oven to 375˚F.
Season chicken thighs with salt, pepper, half of the Italian seasoning, paprika, and garlic powder.
Add olive oil to a large oven-safe skillet and heat over medium heat.
Add chicken thighs to the hot oil, skin side down, and cook for 3 minutes; flip over and cook for 2 more minutes.
Remove chicken from skillet and set aside.
Melt butter in the same skillet.
Add diced onion, peppers, and carrots to the melted butter; cook, stirring occasionally, for 4 to 5 minutes, or until softened.
Stir in the garlic and cook for 20 seconds.
Stir in the rice and cook for about a minute, or until lightly toasted.
Pour in the hot water and chicken broth; stir and scrape up all the browned bits from the bottom of the skillet.
Stir in remaining 1/2-tablespoon Italian seasoning, salt, and pepper, then add the chicken thighs back to the skillet, skin side up.
Bring mixture to a boil.
Cover with a lid and transfer to the oven; cook for 25 minutes. (You can also use aluminum foil for cover, but make sure to cover it tightly.)
Remove lid and continue to cook for 10 to 12 more minutes, or until liquid is absorbed.
Remove from oven and let stand few minutes before serving.
Garnish with parsley and serve.