Preheat oven to 375°F (190°C). Season flour with salt and pepper and toss chicken in mixture, working in batches to coat. Reserve leftover flour.
Heat half the oil in a large skillet set over medium heat. Brown the chicken on all sides, working in batches and adding remaining oil as needed. Arrange in a single layer in a 9 x 13-in. (3.5 L) casserole dish; set aside.
In the large skillet, cook the onions, green pepper, garlic and herb paste. Cook, stirring often, for 5 min. or until tender. Add mushrooms and cook on high for 5 min. longer. Sprinkle reserved flour mixture over vegetables; stir until well coated. If using, add balsamic vinegar (or a small amount of chicken broth) and stir browned bits from the pan. Add tomatoes, tomato paste and broth; bring to a boil.
Pour tomato mixture over the chicken. Bake, uncovered, for 30 min. or until chicken is cooked through and juices are thickened. Taste and adjust seasonings as needed.
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