In a large pot, heat the olive oil over medium heat. Add the ground beef to the pot and cook for 10 minutes or until brown and no longer pink, breaking the meat apart with a spatula as it cooks.
Once the beef has cooked, add the onion and garlic to the pot. Sauté for 2 minutes.
Once the onions and garlic have sautéed, add the bell peppers, both tomatoes, water, beef broth, basil, oregano, parsley, black pepper, red pepper, bay leaf, and rice. Stir together.
Cover the pot and turn the heat to high. Bring the soup to a boil, stirring every few minutes to prevent the rice from sticking. It should take about 10 minutes to come to a boil.
When the soup has reached a boil, remove the cover and reduce the heat to medium. Cook uncovered for 2 minutes.
Remove the soup from the heat and let it sit uncovered for 10 minutes. The rice will continue to cook slightly in the pot when taken off the heat.