Eugene F. Dunne, 68, who operated his own insurance agency in Washington since the mid-1940s, died Saturday at Sibley Memorial Hospital after an apparent stroke.

Mr. Dunne was a native of Torrington, Conn., and came to Washington in 1936. He attended Georgetown University and graduated from the Washington College of Law, now part of American University, in 1941.

He served with the Navy in the Pacific during World War II, where he commanded tankers. By the end of the war he had attained the rank of lieutenant commander.

Mr. Dunne established the Eugene F. Dunne Company, an insurance firm, after the war. He also lectured in suretyship and insurance law at Georgetown University's law school.

He was a member of Christ the King Catholic Church in Silver Spring. He was a member of the Army Navy Club, the Lions Club, and the Rehoboth Beach Country Club.

Mr. Dunne had lived in Chevy Chase for the past 19 years and had resided in Washington prior to that. His hobbies included gardening, sailing, and golfing.

Survivors include his wife, Peggy, of Chevy Chase; a daughter, Susan Jean Reese of Santa Monica, Calif.; three sons, Michael of Saratoga Springs, N.Y., Christopher Eugene, of Cambridge, Mass., and Arlington, Eugene Francis Jr. of Arlington; a brother, Ralston of Torrington, Conn., and eight grandchildren.

The family suggests that expressions of sympathy be in the form of contributions to the American Cancer Society, Children's Hospital, or the Bethesda-Chevy Chase Rescue Squad.