In a large pot, melt butter over medium heat. Cook diced chicken until no longer pink and remove from pot until later in the recipe. Add red bell peppers, onions, jalapenos and saute until tender, about 3 minutes. Add garlic and cook 30 seconds longer. Stir in arrowroot powder, and stir constantly. While stirring, slowly add in chicken broth and whisk until well blended.
Add potatoes, bay leaves and season with salt and pepper to taste. Bring mixture to a boil stirring frequently, then reduce heat to medium-low and cook, uncovered, 10 minutes or just until potatoes are tender, stirring occasionally.
Add in cooked chicken, corn, and half-and-half and simmer, uncovered 10 - 15 minutes longer, stirring occasionally. Serve warm topped with crumbled bacon.