Sprinkle chicken with salt and pepper. In a 12-inch skillet heat olive oil over medium-high heat. Add chicken and cook about 10 minutes or until browned, turning once. Remove chicken, reserving 1 tablespoon drippings in skillet.

Add onion, sweet pepper strips, and garlic to skillet; cook and stir for 4 to 5 minutes or until vegetables are tender. Stir in rice and saffron. Add olives; wine, vermouth, or chicken broth; and 1-1/2 cups water. Bring to boiling. Return chicken to skillet; reduce heat. Simmer, covered, about 25 minutes or until chicken is no longer pink and rice is tender. Serve with lemon wedges. Makes 6 servings.